Beneficiary / life expectancy confusion

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L1: Beneficiary / life expectancy confusionIf I am not married, but have an IRA beneficiary (my brother) do I use the joint calculations or not? This changes my life expectancy, and reading around the internet got me a little confused as to the beneficiary thing vs. life expectancy. I had been calculation selecting “no” to the joint selection box.
(I tried to search for the answer here but the search function returns nothing no matter what I tried to search for)2009-07-13 23:15, By: mikex, IP: []

L2: Beneficiary / life expectancy confusionMerely use the single life [Joint=No] calculations.
As time permits, I will also recheck the search functions.
2009-07-13 23:20, By: Gfw, IP: []

L3: Beneficiary / life expectancy confusionThanks. That’s what I had thought before, but I got confused after reading about beneficiaries, and since your progam asks for a benefidiary, I was worried I didn’t understand a minor detail. After playing with it some more, I see that no matter what age I set the beneficiary to, it makes no difference to the calculations if I select joint -> no.
Thanks again for the clarification!2009-07-13 23:25, By: mikex, IP: []

L4: Beneficiary / life expectancy confusionWhat’s happening here is that use of a joint calculation results in a lower payout because the funds must in theory last longer due to the chance that the beneficiary could outlive you. There is no benefit for lowering your 72t distribution per dollar of beginning account balance. So just indicate “No” for joint calculations.
If it turns out that the calculation provides more than you want or need each year, then reduce the account balance prior to doing your calculations by directly transferring the excess amount to a different IRA account that you can then use for emergency needs if they come up. That will help save your 72t plan if you need more funds.
Final advantage to using “No” is that you can then forget about beneficiary related rules, such as which age to use if there are multiple beneficiaries, and what happens if you want to change the beneficiary on the IRA.

2009-07-13 23:48, By: Alan S., IP: []

L2: Beneficiary / life expectancy confusionThe search function is working again.
An example… To search for the phrase joint life calculations you would enter joint AND life AND Calculations to find posts with all three words.2009-07-14 10:51, By: Gfw, IP: []