That certainly is true. Defined benefit plans require RMD's as specified in § 401 of the tax code. The year end balance only applies to IRA's. The defined benefit plan RMD's must be calculated by the payer and divided into equal payments to meet the RMD requirements as defined in the tax law.
Here is a small portion or the tax code:
[quote]
§ 1.401(a)(9)-6 Required minimum distributions for defined benefit plans and annuity contracts.
Q-1. How must distributions under a defined benefit plan be paid in order to satisfy section 401(a)(9)?
A-1.
(a)General rules. In order to satisfy section 401(a)(9), except as otherwise provided in this section, distributions of the employee's entire interest under a defined benefit plan must be paid in the form of periodic annuity payments for the employee's life (or the joint lives of the employee and beneficiary) or over a period certain that does not exceed the maximum length of the period certain determined in accordance with A-3 of this section. The interval between payments for the annuity must be uniform over the entire distribution period and must not exceed one year. Once payments have commenced over a period, the period may only be changed in accordance with A-13 of this section. Life (or joint and survivor) annuity payments must satisfy the minimum distribution incidental benefit requirements of A-2 of this section. Except as otherwise provided in this section (such as permitted increases described in A-14 of this section), all payments (whether paid over an employee's life, joint lives, or a period certain) also must be nonincreasing.
[end quote]
You can explore the legal language in §401(a)(9 further for more on this.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
