Beneficiary RMDs when IRA owner died prior to ’02
HELP!!!
If an IRA owner died prior to the final regulations passed in ’02, how should beneficiary IRA distributions be calculated?
I have a new client who inherited an account from an IRA owner who passed away over ten years ago. They do not remember how RMDs have been calculated in the past (do not know what factor and don’t care to go through their account statements to figure out the amount that was distributed to allow us to back into the factor). Would I be able to take the IRA owner’s date of death (1997) and calculate the beneficiary’s age as of the following year (1998), get the appropriate factor from the Single Life Expectancy Table and then subtract out to 2008 to get this year’s factor?
Permalink Submitted by Alan Spross on Tue, 2008-11-11 21:39
Yes. Also see your other post where I addressed some of the history of the RMD tables.
You would do exactly as you said, get the divisor for the beneficiary age in 1998 from the current table, and then subtract 1.0 each successive year for a non spouse beneficiary.
Permalink Submitted by Alanna Crawford on Tue, 2008-11-11 22:01
Most helpful- thank you!