Cynchbeast Posted October 23, 2014 Posted October 23, 2014 Which PVAB do we use in calculating the RMD: PVAB calculated on valuation basis, or PVAB calculated on termination basis Also, our actuary uses the first day of the plan year for valuation, so presumably the PVAB shown on last valuation would be as of 01/01/13. Can we use this for the 2014 RMD, or do we need a re-calculation as of 12/31/13?
rcline46 Posted October 23, 2014 Posted October 23, 2014 PVAB is not relevant in calculating the RMD from a defined benefit plan unless the participant is taking a lump sum of their benefit. RMD now must be on an annuity basis. you and/or your actuary may need to review 1.416 again.
Lou S. Posted October 23, 2014 Posted October 23, 2014 See 1.401(a)(9)-6 Q&A 1 (d). As rcline says unless the participant is taking a limp sum it should be a annuity. If you are using this provision though the amount to divide by the applicable division is the actual lump sum distribution.
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