RMD prior to PBGC plan termination

[Gilmore]

The owner of a small company with a defined benefit plan dies in 2014. There is no spouse. Beneficiary is owner's brother who inherits the business.

Beneficiary plans to sell the company and is terminating the DB plan.

Owner and Beneficiary both younger than 70.

PBGC termination forms are being submitted shortly.

The Beneficiary is going to elect to begin taking distributions under the Life Expectancy rule rather than the five year rule. I believe the RMD must begin by 12/31/2015?

Question, can the RMD be taken before the PBGC determination, or must the Beneficiary, now owner as well, until the PBGC determination and the other participants are paid out?

Thank you.

[mbozek]

Under the mrd rules bene would be required to pay a 50% excise tax if the MRD is not taken by Dec 31, 2015. the mrd is required under the terms of the plan.Dont see how the MRD can be deferred.

[Gilmore]

Thank you.