Permalink Submitted by Alan Spross on Sun, 2008-04-06 18:18
While the owner is alive, the owner’s age determines the RMD, except when the spouse is more than 10 years younger and sole beneficiary. In that case, Table II applies and reduces the RMD for the owner.
After the owner passes, the designated beneficiary’s age determines the RMD subject to special rules for multiple beneficiaries and trust beneficiaries. However, if the owner passes AFTER their required beginning date, the owner’s life expectancy can still be used if the owner was younger than the beneficiary or if the estate is the beneficiary.
In certain cases where the owner passes prior to the RBD, the 5 year rule can apply rather than anyone’s life expectancy.
Permalink Submitted by Al Fry on Mon, 2008-04-07 18:17
Yes. The age factor is the beginning factor minus one for each succeeding year. That is what is meant by non-recalc (you do not re-enter the table every year).
Permalink Submitted by Alan Spross on Sun, 2008-04-06 18:18
While the owner is alive, the owner’s age determines the RMD, except when the spouse is more than 10 years younger and sole beneficiary. In that case, Table II applies and reduces the RMD for the owner.
After the owner passes, the designated beneficiary’s age determines the RMD subject to special rules for multiple beneficiaries and trust beneficiaries. However, if the owner passes AFTER their required beginning date, the owner’s life expectancy can still be used if the owner was younger than the beneficiary or if the estate is the beneficiary.
In certain cases where the owner passes prior to the RBD, the 5 year rule can apply rather than anyone’s life expectancy.
Permalink Submitted by Tony Pondel on Mon, 2008-04-07 15:24
Alan:
When the bene’s start to take the RMD, is it calculated on the 12/31 values each year like other RMD calculations?
I thought i heard that beneficial IRA’s only used one value and it wasn’t re-calculated annually.
Thanks.
Permalink Submitted by Al Fry on Mon, 2008-04-07 18:17
Yes. The age factor is the beginning factor minus one for each succeeding year. That is what is meant by non-recalc (you do not re-enter the table every year).