MRD for New Plan

[mwyatt]

Working on a proposal for a new 1-person DB plan effective for 1/1/2005. The sole participant (obviously a 5% owner) attained age 70 1/2 in 2004. NRD would be 1/1/2010 under the Plan. Trying to get a hold of the MRD calcs for the individual. No past service benefit is contemplated (so no AB @ 1/1/2005). Am I correct that under annual approach, MRD that would start @ 1/1/2006 would be 12/31/2005 AB reduced for early commencement and that adjustments for additional accruals would only have to be made annually?

[Effen]

prior post

MRDs apply to the vested benefit. You can keep him non-vested for at least a few years.

Regarding your questions, the answer should be in the plan docuement. Since it is a new plan, you have a nice opportunity to make sure it says something you think is reasonable and something that you can calculate.