70 1/2 Required Minimum Distribution

[Jilliandiz]

Plan Year End is 6/30/06.

Owner's D/O/B is 10/7/35, therefore becoming 70 1/2 in May, 2006.

When I calculate his first RMD, can I use the 6/30/05 valuation ending balance, or do I have to do a special valuation to figure out his 12/31/05 balance and calculate it from there? What account balance date would I use for the first RMD and then what would I use from that point forward?

Any thoughts?

[Guest greybeard]

First question.

Is the plan DC or DB?

[Jilliandiz]

DC Prototype

[Sully]

If it is a daily valuation plan you should use the balance as of 12/31/05.

If it is a balance forward plan you should use the balance as of 6/30/05 plus add in (k) and (m) contributions from 6/30/05 - 12/31/05. Or, run a special valuation at 12/31/05.