RMD for beneficiary of decendent who died in 1995
I have a new client who is the non- spouse beneficiary of an IRA where the decedent died in 1995 after the decedent had begun taking his RMD’s (He died at age 83). She has been taking her RMD’s as a beneficiary under the law in effect in 1995, which I believe is much different than they would be for a beneficiary of an IRA for a decedent dying today.
My question is Do I still have to give her RMD’s under law in effect in 1995 or can I give her RMD under current law. If using current law would I then have to go back to her age in 1995 and subtracting 1 from that for every year since 1995 and calculate the RMD for 2008 and beyond?
Thank you.
Howard
Permalink Submitted by Alan Spross on Fri, 2008-05-02 05:43
Current tables can be used just as you indicated in your final paragraph, except use the beneficiary’s age in 1996, not 1995, and reduce that divisor by 1.0 for each year thereafter.
Permalink Submitted by Howard Hook on Fri, 2008-05-02 10:56
Al,
Thanks as always.
Howard