RMD definition of account balance

[Guest Peggy806]

Participant turned 70 1/2 in 2010, so first distribution would be based on account balance as of 12/31/09. Here's where it gets complicated:

His account balance was only 27,401.32. That amount includes a 2009 deferral of 22,000 and earnings on that 22,000. He is self-employed and his income for 2009 ended up being a loss, so we had to withdraw the 22,000 plus earnings in 2010 (because you cannot have a deferral if you don't have any income).

The record keeping system is calculating his 2010 RMD based on a balance of 27k. Should we calculate this by hand and use a balance of 27,000 less the 22,000 deferral, less the income?

It is a confusing case and hope this detail makes sense.