RMD Exception
Confused by exception to minimum RMD as explained at MarketWatch whereby if spouse is sole beneficiary and more than 10 years younger, the calculated RMD amount would be lower and therefore “tax would be lower”. https://www.marketwatch.com/story/understanding-the-ira-mandatory-withdrawal-rules-2015-03-09 When calculating according to Table II in Appendix B of IRS Publication 590-B for 84 year old with spouse 18 years younger, joint life expectancy is 20.1 which is used to calculate minimum distribution. Not using this exception, life expectancy is 15.5. Is this correct?
Permalink Submitted by Alan - IRA critic on Wed, 2019-11-20 04:18
You are one column off. The joint and last survivor divisor for IRA owner age 84 with sole beneficiary spouse age 66 is 20.9. Remember, the higher the divisor the lower the dollar amount of the RMD. 20.9 is considerably higher than 15.5, so the RMD is proportionately lower using the joint life table. If the Uniform table was used the distribution would be more than the actual RMD. If an error was made any amount in excess of the proper RMD could be rolled back within 60 days of receipt of the higher distribution subject to the one rollover per 12 month limitation.
Permalink Submitted by Peg F on Wed, 2019-11-20 13:04
Thank you.