5 year rule vs single life table…
A non-spouse (78 years old) bene inherited a TIRA. Am I correct in saying we can use either the 5 year rule or the single life table for the non-spouse beneficiary? Do the rules change whether or not the deceased TIRA owner was already taking RMD’s or not?
Permalink Submitted by Alan Spross on Fri, 2010-06-11 18:29
Yes, the age of the decedent determines whether the 5 year rule can be used. If the decedent passed PRIOR to their RBD, the 5 year rule is an option to the life expectancy default rule. If the decedent passed ON or AFTER the RBD, the 5 year rule is NOT an option.
However, if the decedent passed on or after the RBD, the beneficiary can use the longer of their own life expectancy or the remaining life expectancy of the decedent.