which RMD table?
I have a husband and wife client. Husband’s date of birth is 09/07/1948 and wife’s date of birth is 10/29/1958. Thus, he is 10 years and 1 month older than her. According to my research, he should be able to use the joint life expectancy table for calculating his RMD. However, every calculator I find online is using the single life table. Can you confirm if he can use the joint life table or not?
Thanks!
Permalink Submitted by Alan - IRA critic on Fri, 2019-11-15 23:45
The joint table applies when the sole spousal beneficiary is more than 10 years younger, measured as their actual age as of their birthdays. Months are not considered. Spouse being exactly 10 years younger (61 vs 71), husband should use the Uniform Table. However, if you checked the joint and last survivor table for their ages it would produce the identical divisor for those whose age difference is 10 years (26.5) because the Uniform table divisors are based on joint lives of the taxpayer and a beneficiary 10 years younger. If she had been born in 1959 and been 11 years younger, the joint table would apply and produce a slightly lower RMD than the Uniform table. The single life table only applies to beneficiaries.
Permalink Submitted by Philip Detlefs on Mon, 2019-11-18 20:20
So, I just want to clarify. He turned 71 and his wife was still age 60. Are you saying this doesn’t matter? They still go by the year you were born and it has nothing to do with the actual birthdate during that particular year?
Permalink Submitted by Alan - IRA critic on Mon, 2019-11-18 20:49
Correct. The age is determined in whole years as the age attained on their birthday each year. In your example, the age difference is 10 years, despite there actually being a 10 year 2 month difference. It is possible to have a 10 year 11 month difference (birthdays in Jan and Dec), but still be considered 10 years for attained age.