How to handle RMD for FT

[Guest Doogie61]

I have a small DB plan where the owner is taking his RMD. During 2009 he took $9995. This is and END OF YEAR valuation so the assets as of 12/31/09 are less the $9995 he took. There is no Target Normal Cost for the year.

When calculating the Funding Target, since it's based upon the accrued benefit as of the first day of the plan year, would I add back the $9,995 RMD distribution that was taken on 12/01/2009 for "calculation purposes" for and End of Year valuation?

Seems to me if you need to "pull out advance deposits" you should "add in" distributions....right?

[Mike Preston]

I would go the other direction. How would you treat an employee who terminated in the sixth month of the plan year and was paid a lump sum before 12/31?