IRA Rookie/options for benes
Could someone please lay it out simply for me regarding the options a bene has after IRA participant has died?
1. Spouse bene: owner died before RBD
2. Spouse bene: owner died after RBD
3. Non Spouse: owner died before RBD
4. Non Spouse: owner died after RBD
Thanks in advance for taking the time to help me clarify 😀 [/b]
Permalink Submitted by Alan Spross on Mon, 2009-01-05 18:57
1. (Sole) Spouse bene: owner died before RBD
a) Treat as Own or rollover to own IRA or
b) Take life expectancy RMDs as a beneficiary or
c) 5 Year Option – fully distribute by end of 5th year following death
2. (Sole) Spouse bene: owner died after RBD
a) as above or
b) Take life expectancy RMDs using longer of beneficiary’s life or decedent’s
3. Non Spouse (Individual): owner died before RBD
a) Take life expectancy RMDs as beneficiary or
b) 5 Year Option
4. Non Spouse (Individual): owner died after RBD
a) Take life expectancy RMDs using longer of beneficiary’s life or decedent’s
Permalink Submitted by Jose Morales on Mon, 2009-01-05 19:07
1. Spouse bene: owner died before RBD (or Roth IRA)
A) Treat As Own
B) Beneficiary’s Single Life Expectancy, Attained Age Method
C) Five Year Rule
2. Spouse bene: owner died after RBD
A) Treat As Own
B) Single Life Expectancy – Longer of Bene’s Life Expectancy, Attained Age Method or IRA Owner’s Life Expectancy, Reduction Method
3. Non Spouse: owner died before RBD (or Roth IRA)
A) Bene’s Single Life Expectancy, Reduction Method
B) Five Year Rule
4. Non Spouse: owner died after RBD
A) Single Life Expectancy – Longer of Bene or IRA Owner’s Life Expectancy, Reduction Method
5. Non Spouse, Non Individual: owner died before RBD (or Roth IRA)
A) Five Year Rule
6. Non Spouse, Non Individual: owner died after RBD
A) IRA Owner’s Remaining Single Life Expectancy, Reduction Method
Permalink Submitted by Linda Randazzo on Mon, 2009-01-05 19:46
Thank you both!