younger spouse rmd
I have a client with 2 iras – one in a va and one in and eia (as well as a 401k that he is still contributing to). He turned 70.5 last year and took full ira rmd (based on uniform table) from the va. BUT, his spouse is 18 years younger. Can he now take his ira rmd from the va and eia based on the joint table instead of the uniform table? And if he can is he then locked into that mode?
Permalink Submitted by Alan Spross on Tue, 2007-11-20 21:04
Yes, he can switch over to the joint table as long as the spouse is the sole designated beneficiary on the respective contracts. If only on one of the contracts, the appropriate table can still be used for each and the RMDs aggregated. I trust that the annuity carriers are providing the correct year end balance on which to base the RMDs. In some cases contract benefits cause the values of those benefits to be added to the FMV for RMD purposes.
Too bad he took a larger RMD than necessary last year, particularly since he is still working and has the added income. The joint table can be used as long as the beneficiary age permits, but he can always take out more if he wishes.