Beneficiary IRA RMD
L1: Beneficiary IRA RMDPlease verify if am thinking correctly. I believe we cannot use the standard RMD calculation for a Beneficiary IRA RMD. Correct? We have access to a calculator specifically designed for Bene IRA”s. IRA Owner died at age 82. Son/ Daughter are bene”s. Son is oldest. We must use his age to calculate the RMD. We have the funds split into an IRA account for each bene.
Facts of calculation: Dad”s age at Death (after RBD), 82. Son age 12/31 year after Dad”s death: 52. Son”s age year of distribution is: 52. 12/31 account balance is $376,488.00. RMD is: $11,656.00
Standard RMD calculator states RMD to be: $8,635.00.
To calculate the RMD for daughter we would just change the 12/31 account balance…correct?
I appreciate everyone”s input.
-Ed2008-04-18 09:14, By: ed, IP: [18.104.22.168]
L2: Beneficiary IRA RMDFor non-spousal beneficiaries of a decedent who dies after his Required Beginnning Date, the single account can be split into separate accounts by 9/30 of the year after the year of death. In that case, each can use their own life expectancy for the first distribution per the SINGLE LIFE TABLE. In this case the son”s RMD for his 1/2 of the IRA balance is $ 376,488/2 = $ 188,244/ 32.3 (factor) = $ 5,828 for his half. His sister will use her life expectancy on her half.
If you left the IRA account intact, then, and only then, would you use the older beneficiary”s life expectancy only for a total distribution to be split between them.
Each year after the initial distribution, the factor is reduced by 1.0, rather than looking at the table again ( where the factors usually go down by 0.9).2008-04-18 13:19, By: dlzallestaxes, IP: [22.214.171.124]
L2: Beneficiary IRA RMDdlzallestaxes-
the $376,488.00 is just the brothers 12/31 account balance. His sisters was the same dollar amount.
What I see you saying is we can use each individula life expectancy, we do not use the eldest bene”s life expectancy to calculate the RMD for each bene…correct?
-Ed2008-04-18 13:44, By: Ed, IP: [126.96.36.199]
L2: Beneficiary IRA RMDCorrect, so long as they have been split into separate accounts by 9/30 of the year after year of date.
P.S. Your $ 8,635 is a “reverse factor” of 43.6 which is for someone 40 years old. You must be using the wrong table for that calculation, proibably the spousal table, which does not apply.2008-04-18 14:00, By: dlzallestaxes, IP: [188.8.131.52]
L2: Beneficiary IRA RMDIn addition to their own RMDs starting in the year following death, they need to be sure that Dad took his full RMD in the year of his death, or they need to take that distribution by 12/31 of the year he passes. This quite frequently becomes the first issue to be addressed. The next is for the beneficiaries to name their own successor beneficiares ASAP.
If he passes late in the year anda delinquent RMDis not discovered by year end, then they need to take the delinquent RMD when discovered and request relief from the excess accumulation penalty for reasonable cause using Form 5329. The IRS is almost sure to grant that relief under the circumstances. Inst on p 6 of the 5329 Inst. 2008-04-18 18:14, By: Alan S., IP: [184.108.40.206]