L1: Beneficiary AgeHave a client who wishes to set up a 72T. She is 54 and her husband, the beneficiary,is 66. The maximum age for the beneficiary that thecalculator will let me enter is a 10 year difference or age 64. Why and is this an issue?2009-05-12 15:09, By: SKM, IP: [188.8.131.52]
L2: Beneficiary AgeIt really isn’t an issue simply because using joint calculations only reduces the payout and no one is required to use joint calculations.
Start with single life calculations – if the distribution is more than you want, use the reverse calculator to determine the amount that you need to allocate to the SEPP and move the balance to a second IRA to be used in emergencies. 2009-05-12 16:16, By: Gfw, IP: [184.108.40.206]
L3: Beneficiary AgeJoint-life calculations are really onlycritical when dealing with Required Minimum Distributions (RMD) AND there is an age difference of greater than 10 years between spouses. For example, husband is age 72 and his wife is age 32, and the objective is to only take the truly Required MINIMUM Distribution.
If you are dealing with a SEPP Plan and converting from Amortization or Annuitization to the RMD method, and you have an age difference greater than 10 years, then use the Joint Life Table withattained ages of the spouses to pull the factor for your divisor in the calculation. That’s all you have to do.
Jim2009-05-12 18:34, By: Jim, IP: [220.127.116.11]