Non-spouse dist. rules after decedents rmd
What are the rules for a non-spouse beneficiary wanting to strech out dist after decedent has begun rmds
and where in pub 590 can it be found( if that the right pub)
Thanks in advance.
What are the rules for a non-spouse beneficiary wanting to strech out dist after decedent has begun rmds
and where in pub 590 can it be found( if that the right pub)
Thanks in advance.
Permalink Submitted by Al Fry on Thu, 2007-10-04 18:58
Found on page 20-23 and 35-36 of 590. It is calculated the same way as the owner’s RMD, EXCEPT: (1) must use Single Life Table (pp. 86-86); and (2) cannot recalculate, simply subtract 1 from prevous year’s factor each year.
Permalink Submitted by [email protected] on Thu, 2007-10-04 19:21
Ok great! That is what i thought. now that we have cleared up, lets move on to the real issue at hand. The beneficiars are three children. Son, Daughter, daughter. The son has already taken his share which leaves the remaining balance to be split by daughters evenly, but the mom died last yr (oct 2006) can the ira be split between the two and based on their own indiv. life expectancy if done by dec 31 of this yr
Thanks
Nick
Permalink Submitted by Alan Spross on Thu, 2007-10-04 20:50
Yes, 12/31 is the deadline for separate accounts using the single life expectancy of each beneficiary.
The beneficiaries also need to be sure that Mom was current on her RMDs including 2006. If not, these distributions need to be taken ASAP and would of course be taxable to the beneficiaries.