RMD from New Plan - required or not?

Good morning to all,

Something new to us came up this morning.  We put in a good number of brand new 401(k) plans in 2018, with effective dates of 01/01/2018.  Therefore nobody in those plans had an account balance at 12/31/2017.

If a 73 year old employee made salary deferrals in 2018 to his employer's new plan and then quit during the year, must he take a RMD before 12/31/2018?  What would the distribution be based upon, since there was no balance at 12/31/2017?  Same concept if it was a working owner of the business: a 73 year old owner installs a new 401(k) plan in 2018 and makes salary deferrals.  He's still working at 12/31/2018, but because he is the owner, he would normally have to take a RMD by 12/31/2018.  What is it based upon, since there was no balance at 12/31/2017?

At first blush we thought maybe they don't have to take one until 2019, but nothing is ever that simple or easy.

Advice as to what the rest of you are doing will be greatly appreciated!

7 minutes ago, ldr said:

What is it based upon, since there was no balance at 12/31/2017?

Exactly.  No RMD.

@ Bird, so for once, it really is that simple?  No RMD?  Great!  Merry Christmas!