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Showing results for tags 'RMD with 242(b)'.
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We administer a DB that we set up in the 1980s with a valid 242(b) election. The sole participant is now 78 and wants to terminate the plan. Clearly she has to take an RMD prior to rolling over to an IRA. Can we use the account balance method and then rollover? (I doubt it.) How is the "make-up" distribution calculated? I would assume by calculating each distribution, then accumulating that distribution at the plan's interest rate from the date it would have been taken through the current valuation year; adding all these up and subtracting from the current value of all the plan investments.
