[quote=”[email protected]“]My client is receiving a DROP (deferred retirment option) distribution from their employers retirement plan. The client is currently 71 years of age and is retiring 12/31. The DROP distribution will be paid on 1/31/11. The client went to the retirement plan to set up a rollover of the amount and they told her her RMD would be quite a bit more than what we anticipated using the uniform life table. The retirement plan explained to my client since they were a retirement plan (DB) and the tables published by the IRS are for IRA purposes. The retirement plan is using a life expectancy of 7.7207 for this distribution. They explained to my client their actuaries developed this table for them based on current law.
I can not find where retirement plans are required to use a different distribution table for distributions from their plans. Any help would be greatly appreciated. Thanks[/quote]

RMDs for DB plans are usually calculated differently from RMDs for other plans. Different tables are usually used. See Treas. Reg. §1.401(a)(9)-6, and 1.401(a)(9)-6T.
Recall that when the Final RMD rules were issued for IRAs and DC plans, the rules for defined benefit plans and annuities were included in temporary regulation §1.401(a)(9)-6T

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