Beneficiary IRA Required Distribution

L1: Beneficiary IRA Required DistributionWhen determining life expectancy on, I guess ANY, MRD……….if I’m 50 in January when I want to take the distribution, but 51 in August of the same year – what is my life expectancy age 50 or 51?2006-01-09 08:28, By: Kim, IP: [24.172.244.210]
L2: Beneficiary IRA Required DistributionAge is your attained age for the calendar year – if you will be 51 anytime during the year, you are 51 for the full year.2006-01-09 08:30, By: Gfw, IP: [172.16.7.101]

L2: Beneficiary IRA Required DistributionThis is one of the most asked and most confusing issues I have found over the years. But I have also found a simple question to ask to get the correct answer:
“How old will you be on December 31 of the year in question?”
When you answer this simple question you will know your “attained age” for the year.
Jim2006-01-09 08:39, By: Jim, IP: [70.184.1.35]

L2: Beneficiary IRA Required DistributionThanks for the quick reply. When I put my birthdate into the calendar in this site, it shows a single LE of 34.2 years, which puts me at 50???2006-01-09 08:42, By: Kim, IP: [24.172.244.210]

L2: Beneficiary IRA Required DistributionWhat page are you using?2006-01-09 10:20, By: Gfw, IP: [172.16.7.101]

L2: Beneficiary IRA Required DistributionDistribution Planner under Minimum Distribution tab2006-01-09 10:23, By: Kim, IP: [24.172.244.210]

L2: Beneficiary IRA Required DistributionWhat is the exact input that you are using in all entries – also note the calculators assumes that the owner is alive and well – it isn’t designed for beneficiary IRAs, but I will take a look once you provide all the input you used.2006-01-09 10:41, By: Gfw, IP: [172.16.7.101]

L2: Beneficiary IRA Required Distribution Owner Born – 1/30/1930
Owner age at Death – 74
Beneficiary Born – 8/21/55
Beneficiary Age at Death – left default at 80
Beneficiary Status – Individual
Beneficiary Beneficiary Born – 1/4/82
Investment Amount – $100000
Investment Rate – left default at 7
Calculation Distribution for – Beneficiary2006-01-09 10:52, By: Kim, IP: [24.172.244.210]

L2: Beneficiary IRA Required DistributionKim:
Please provide the following information:
Date of Owner’s death:
Is the Beneficiary (who died) the Owner’s spouse?
Please confirm Beneficiary’s DOB as 8/21/1955.
Date of Beneficiaries Death:
Who is the current “Owner” of the IRA; the original owner, the primary beneficiary or the contengent beneficiary?
If the current Owner is not the original Owner, what date did the present owner transfer the IRA into their name?
Please confirm the Contingent Beneficiary’s DOB is January 4, 1982.
Are all Beneficiaries “natural persons” instead of a trust or other legal entity?
The answers to these questions are quite important.
Jim2006-01-09 11:30, By: Jim, IP: [70.184.1.35]

L2: Beneficiary IRA Required DistributionDate of Owners Death – 10/24/2004
Is the Bene (who died) the owners spouse? The Bene didn’t die – the original owner died – and – no – the bene is a daughter
Bene’s DOB – 8/21/55 (daughter)
Date of Benes death – still alive
Current Owner – I guess that would be the primary beneficiary of the descent – daughter
Original owner died in 2004 at age 74. Took MRD in 2004 based on original owners LE. Transferred to Beneficiary IRA in June of 2005 and took an MRD then based on beneficiaries LE
The beneficiaries beneficiary is now her daughter with a birthdate of 1/4/82
All bene’s are “natural persons
Based on your questions, I guess I’m confused. I thought the owner meant the “orginal owner” who is now deceased.
Thanks again for all the help.
2006-01-09 11:39, By: Kim, IP: [24.172.244.210]

L2: Beneficiary IRA Required DistributionI input the numbers provided – please run again and review the output table – the first year listed is year 5, 2005 and in 2005 the beneficiary would have been 50 – age 51 shows for 2006.
5 2005 50 23 34.2 2.924% $7,000 $2,924 $104,076 6 2006 51 24 33.2 3.012% $7,285 $3,135 $108,227 2006-01-09 12:34, By: Gfw, IP: [172.16.1.73]

L2: Beneficiary IRA Required DistributionAh – gotcha. I guess it was the 2005 I didn’t catch. Since it’s 2006, I was looking for how much was needed in 2006. That would be the 12/31/05 value divided by 33.2. This needs to be done manually versus using the calculator. Again, and as always – thanks for your help. 2006-01-09 12:43, By: Kim, IP: [24.172.244.210]

L2: Beneficiary IRA Required DistributionKim:
Sorry for my questions causing so much confusion. Unfortunately I was mixing your situation with another one earlier today wherein the Primary Beneficiary died shortly after the Owner, and now the Contingent Beneficiary has moved into the picture. Also, if the Primary Beneficiary were the Owner’s Spouse vs a Non-spouse person, there are different options available to the Spouse that are not available to the Non-spouse. Any way, it sounds like you have things under control, but I have two things for you to check into:
1. If new beneficiary designations for the Beneficiary IRA have not been established, make this a priority.
2. You can probably save some real aggrivation by having the IRA custodian(s) set up automatic, RMD calculations and distributions. These can be annual, SA, Qtrly or monthly distributions, just depending on your situation.
Hope all of this helps.
Jim2006-01-09 16:03, By: Jim, IP: [70.184.1.35]