RMD

[Guest Jappybaby]

Is it possible to calculate a RMD based on to different market values? 10/31 and 12/31

There's a plan whose PYE is 10/31. The 401(k) and Match is valued daily but the PS source is valued annually (10/31). In the past, the RMD has been calculated on the most recent values available.

Is it permissible for the RMD be calculated based on a 12/31 and 10/31 value or would you suggest the PS be valued at 12/31 and then the RMD be calculated.

[Tom Poje]

well, the regs (1.401(a)(9)-5 Q-3) says

Q–3. What is the amount of the account

of an employee used for determining

the employee’s required minimum

distribution in the case of an individual

account?

A–3. (a) In the case of an individual

account, the benefit used in determining

the required minimum distribution

for a distribution calendar year is

the account balance as of the last valuation

date in the calendar year immediately

preceding that distribution calendar

year (valuation calendar year)

adjusted in accordance with paragraphs

(b) and © of this A–3.

(b) The account balance is increasedby the amount of any contributions or

forfeitures allocated to the account

balance as of dates in the valuation

calendar year after the valuation date.

For this purpose, contributions that

are allocated to the account balance as

of dates in the valuation calendar year

after the valuation date, but that are

not actually made during the valuation

calendar year, are permitted to be excluded.

© The account balance is decreased

by distributions made in the valuation

calendar year after the valuation date.