forgotten how to calculate RMD
Hello: My husband inherited a bene IRA in June 06 from his mother when she passed. My husband (Jeff) took her RMD for 2006 in the year 2007. We then took 2007 rmd, but since then my computer at work crashed and I lost the chart I created from advice from this forum on how to calculate the RMD. My mother in law was 79 when she passed and my husband was 56 in 2006. I need to get back on track as we missed the RMD last year. For some reason we did not get a reminder notice from the broker, probably not his duty but we count on it. My question is: We took her RMD for 06, and then I can’t remember if we changed the factor for 07 based on my husband’s age or if we continue with his mother’s rate? Help please.
Permalink Submitted by Alan Spross on Wed, 2009-04-15 21:13
The annual RMDs should be based on your husband’s non recalculated life expectancy starting with his age as of 12/31/07. If that was 57, the divisor was 27.9 for 2007. It is then reduced by 1.0 for each succeeding year. For 2008 it would be 26.9, and the 2009 RMD has been waived. He would start again in 2010 using a divisor of 24.9. Table I in Pub 590 applies.
The late 2008 RMD should be taken ASAP, and a request to excuse the excess accumulation penalty for reasonable cause should be filed with Form 5329 for 2008. See Inst for Form 5329, p 6.
Permalink Submitted by DiAnna Williams on Wed, 2009-04-15 21:31
Great! Thank you.