Calculation of RMD

[lkpittman]

Profit sharing plan year ends 8/31/99. Participant turns 70 1/2 on 4/24/00. Plan was terminated and direct rollover to IRA of funds in terminated plan was completed as of 12/31/99. For calculating the RMD for 2000, do we use 8/31/99 plan year ending balance or 12/31/99 IRA balance? Any guidance out there?

------------------

LKP

[Ervin Barham]

My first reaction is that you would use the 12/31/99 IRA balance. Since the RBD is not until 4/1/2001 and the plan was distributed prior to the beginning of the distribution calendar year (2000), then you would look to the IRA. The IRA would be the latest valuation in the lookback year (1999).

I have not researched this extensively, however. I suggest you do a search on this site for further help.

[This message has been edited by Ervin Barham (edited 01-18-2000).]

[lkpittman]

Thanks . . . that was my first instinct, too. But then I read the proposed regs under 401(a)(9) and got confused. Any other thoughts or info anyone can pass on from those regs? Thanks.

------------------

LKP