
You have several distribution options. First, select when to begin minimum distributions. You have four choices:
- Have the distributions begin the year the owner reaches age where RMDs are required
- Have the owner defer minimum distributions one year
- Have the owner retire after age that RMDs are required; or
- Have the owner make TEFRA 242 election. The TEFRA 242 designation allows a plan owner to delay commencement of benefits until actual retirement, even if it occurs after age that RMDs are required. It assumes a catch-up distribution for the years that were deferred after the age that RMDs are required year.
If you are illustrating a historical calculation (one starting in 2002), you can also select how those distributions should be calculated: using the 2002 Final Regs the 2001 Proposed Regulations; or the 1987 Proposed Regulations.
Likewise, in 2001 you can select either the 2001 Proposed Regulations or the 1987 Proposed Regulations.
If you are using the pre-2001 options, you can choose to recalculate the owner’s and/or the beneficiary’s life expectancy in each