Life Expectancy Plan Inquiry

If a life expectancy plan is in it’s last year and the RMD is $1,000.00 however the total account value is $1500.00. Is there any reason why the client could just take the RMD this year and continue to keep the account open and take out the remaining balance in 2022?

Thank you.



Client could do that. There really isn’t a last year until the balance is 0. If the divisor is .9 (just under 1.0) or if the account grew alot after the prior year end, the RMD will not drain the account and it runs over another year.



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