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Guest tbeatty
Posted

I Have a participant who received a RMD in error, due to a bad birth date. He cashed the check. We are asking for a return of the distribution, but I believe there is an interest calculation to include. Not sure of how to calculate the interest.

Posted

You can use the participant's rate of return during the period. You could use the plan's return during that period, if they are pooled assets.

We just usually use the DoL calculator. Or you can use any other reasonable method of determining the interest.

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

Guest tbeatty
Posted

You can use the participant's rate of return during the period. You could use the plan's return during that period, if they are pooled assets.

We just usually use the DoL calculator. Or you can use any other reasonable method of determining the interest.

much thanks!

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