You wrote
2) If taken in 2017, the the 2016 year end value is irreverent since there was no 2016 distribution.
Why? In my opinion, the 2017 RMS is based on the year end value of 2016, not that of 2017. It has everything to do with that of 2016, not that of 2017. the taxible portion of RMD should be calculated as basis/that of 2016.
