I need some help with the following RMD:

Participant is a terminated vested non-5% owner. Employer was unable to locate him until this year, which is why he did not go into pay status at age 65.

Plan actuarial equivalence = UP84 (pre and post retirement mortality) @ 7.00%
DOB = 10/1/1933
Initial distribution year = 2004 (first RMD must be paid by 4/1/2005)
Monthly accrued benefit at 12/31/2003 = 165.93
Age at 12/31/2003 = 70.25
Present value of AB at 12/31/2003 = 165.93 x 90.5175 = $15,019.57
Applicable divisor from Uniform Life Table = 26.5 (using participant's age in 2004)

Required Minimum Distribution that must be paid by 4/1/05:
$15,019.57 / 26.5 = $566.79

Two questions:
1) Is the above calculated correctly?

2) How do you calculate the amount of the next Required Minimum Distribution (that must be paid by 12/31/2005)? (Please use actual numbers)

You are applying DC rules. A DB plan should pay out the monthly accrued benefit beginning with the required beginning date.

So there is no option? You have to begin payment of the full vested accrued benefit (in this case we would begin monthly payments on 4/1/2005 of his benefit calculated as of 4/1/2005)?

You can find a previous discussions here.

Turtle, many are still using the "account balance method" through 2005, reasonable or not. Next year is a different story.