Melissa2115 Posted February 24, 2022 Share Posted February 24, 2022 For a trustee-directed plan, we have historically calculated the RMDs once we've accrued the contribution. The participants ending balance at 12/31/2021 would be equal to the actual investment balance plus their contribution receivable. The participant wants his RMD in January before we know the accrued contribution amount. Can we modify our methodology and calculate the RMD based on just the value of the investments going forward? We don't have the accrued contribution amount available in January. Thank you! Link to comment Share on other sites More sharing options...
Bird Posted February 25, 2022 Share Posted February 25, 2022 Somewhere buried in the regs it says you can calc it on a cash basis (in many more words than that). I don't recall anything about having to be consistent so I'd say you could change. Lou S. and Melissa2115 2 Ed Snyder Link to comment Share on other sites More sharing options...
Melissa2115 Posted February 28, 2022 Author Share Posted February 28, 2022 Thank you! We are going with the interpretation that because you are allowed to disregard a contribution receivable, you are permitted to change the calculation method from one year to the next. Link to comment Share on other sites More sharing options...
Jakyasar Posted February 28, 2022 Share Posted February 28, 2022 I did not check but can you change from one year to another on how to calculate the balance? Seems to be inconsistent, at least to me. Just curious. I agree that, one can do either cash or accrual but does it have to be consistently? Link to comment Share on other sites More sharing options...
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