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Posted

Can you provide more details about what aspect you are questioning?  The MRD is based on the accrued benefit. Are you asking about a traditional DB, or a cash balance plan? 

The plan doc contains provisions applicable to the form, timing, and amount of payment.

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

Posted

The short answer is that the participant must commence distribution of 100% of their accrued benefit no later than their required beginning date. However this is a very complicated topic and there are a lot of pitfalls and nuances to it.

Mary Ann Rocco did an excellent 2-part webcast on this topic recently, it's available on-demand from ASEA if you want to learn more.

https://www.asppa-net.org/asea/events/webcasts/on-demand/

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.
corey@pppc.co

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