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Then you inform the client that they need to get you whatever information is required for you to accurately calculate their benefit before the RBD if they want to avoid a disqualifying failure, and fines.

Assuming this is a 5% owner, since there is no mention of retirement date. If they attained age 72 in 2022 then required beginning date is 4/1/2023. If you commence benefits on 4/1/2023 then the amount distributed is the participant's benefit as of 4/1/2023. To adjust the benefit calculated as of the 12/31/2022 (I assume you meant 2022) valuation to 4/1/2023, refer to the plan's definition of actuarial equivalence. If allowed by the plan. If he takes a distribution of his entire benefit as a lump sum in 2022 then he can use the DC method to calculate the portion of the distribution that is an RMD and roll over the rest. Be mindful of the rule that requires the plan to be 110% funded for an HCE to take a lump sum.

Generally, you satisfy DB RMDs by commencing the benefit as an annuity, either single or joint life, unless the plan allows other options. If the plan allows a lump sum and participant so elects, then a portion of the lump sum will need to be parsed out for one or two year's worth of RMDs, depending when paid. The RMD portion can be determined as 12 or 24 annuity payments or considering the lump sum as a DCP balance and using DCP RMD methodology, which always (in my experience) leads to a lower RMD portion. If this is for an owner or HCE, the plan will need to be sufficiently funded to pay a lump sum.