RMD - Cash Balance Plan

[Lou S.]

I have to admit I'm confused by the RMD rules for cash balance plans. Am I missing something obvious in the regs?

Do I convert the hypothetical account balance to an annuity benefit and that is the RMD using the DB rules? Or do I treat the account balance like DC Plan and simply divide by the applicable table to get the RMD?

What happens when a 5% owner continues working, getting contribution credits and interest credits but is alos recieving RMDs? If treated like a DC plan no problem, if annuity method; do I recalculate each year based on account balance or add the current year annuity eqivalent of this year's contribution credit to prior year RMD annuity benefit?

Hope this question makes sense.