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An internal email I just sent that I decided to share with my BL Buddies! When you are processing lost interest for a lot of people, the hard way is to calculate the total interest and then use a somewhat complicated formula to prorate based on total interest and total 401k. Here is an easier way. Enter the loss amount as $100,000. Whatever the interest is can easily be converted to a percent. So if the interest comes out to be 6,472.32, the interest rate (or "factor" to be more precise) is 6.47232% which ought to be precise enough to get us within a penny or two of what interest ought to be. So just multiply each person’s 401k by 6.47232%. No calculator required for that conversion, just pretend the comma is the decimal point. If you are using this technique, I would still calculate what the total interest is supposed to be (i.e., enter the actual loss amount with the same dates) so you can prove you did it correctly. I guess it will only work with one loss date at a time. I hope you like it...

1. Check the plan document. He may not be obligated to take an RMD until he reaches age 70-1/2 or retires, whichever is later. Meaning that, if he can take a distribution while he is still employed, none of it may be RMD, because he hasn't retired yet. 2. Withholding on the RMD amount is 10%, but the participant can choose to have more or 0% withheld. The portion of the distribution that is eligible for rollover is subject to the mandatory 20% withholding.