Uniform or single table?
An inherited roth IRA that a minor has inherited , need to take RMD. Just wondering if there is a simple way to know which table to use. Thanks for all your help
An inherited roth IRA that a minor has inherited , need to take RMD. Just wondering if there is a simple way to know which table to use. Thanks for all your help
Permalink Submitted by Denise Appleby on Thu, 2008-02-14 18:50
The single life table. An easy way to remember is that the IRS refers to it as [b]Single Life Expectancy- For Use by Beneficiaries[/b]
Permalink Submitted by Alan Spross on Thu, 2008-02-14 19:02
Remember, the minor’s custodian need only check the table for the first RMD year, ie the year following the owner’s death. For subsequent years, the divisor is reduced by 1.0 for each year.
It would be wise to make a list showing the calendar year and the divisor for that year for each respective year until the age of majority, and file it in the IRA folder. Having done this, the issue need not be re visited annually, with the potential for error. Also, a successor beneficiary should be named on the account and a big red flag warning that NO ROLLOVERS are allowed. Any change of IRA custodian must be done by direct transfer.