2009 MRD from DB plan

[Guest Sieve]

Small employer DB plan established in August, 2009 for plan year ending 8/30/2009. One owner turned 70-1/2 in 2009. Is an MRD required in 2009? Actuary thinks not because there was no accured benefit as of 12/31/2008. Thoughts?

[Mike Preston]

Always listen to the actuary. Especially if he will be kind enough to provide a citation.

[Andy the Actuary]

Small employer DB plan established in August, 2009 for plan year ending 8/30/2009. One owner turned 70-1/2 in 2009. Is an MRD required in 2009? Actuary thinks not because there was no accured benefit as of 12/31/2008. Thoughts?

Would agree.

In general, what are NRD and vesting provisions? E.g., participant may not be vested if 3 year vesting and NRD is 5 years from DOP. In such case, whether or not there is an AB is moot.

[Belgarath]

I agree that if zero % vested the question is moot. However, if not, it seems to me that the 12/31/2008 issue isn't applicable for a DB plan - only for a DC plan. For a DB, under 1.401(a)(9)-6, Q&A-1©, it seems to me that an annuity payment (IF there's any vesting of an accrued benefit as of the 8/31/09 valuation date) must commence on or before 4-1-2010.

[ScottR]

What he said. Exactly right.

.. Scott