IRA BDA ?
The scenario is this:
daughter dies with 73 year old mother as beneficiary on her IRA
IRA gets rolled by 73 year old mother to a beneficiary IRA
73 year old mother retires this year
Does she need to begin taking RMD’s or can she use her daughter’s actuarial table?
Permalink Submitted by Alan Spross on Tue, 2009-06-30 19:59
She could only use her daughter’s remaining life expectancy if the daughter passed on or after her required beginning date. Since she passed prior to that date, the mother’s best option is to use her own non recalculated life expectancy starting in the year following her daughter’s death. She could also opt for the 5 year rule with the requirement that the account be drained by the end of the 5 th year following daughter’s death.
For 2009 all RMDs are waived, and 2009 does not count as a year for purposes of the 5 year rule.
Permalink Submitted by Anonymous (not verified) on Tue, 2009-06-30 20:57
I am curious about the following to refresh my RMD rules knowledge:
Had the mother been much older (example age 94) and the daughter passed away after RBD (age 73), would the mother be able use the the daughter’s remaining LE non-recalculated?
Thanks.
pmk
Permalink Submitted by mk foss on Tue, 2009-06-30 21:08
There is an exception that applies when the IRA owner has passed their required beginning date with an older beneficiary. The beneficiary can use their own life expectancy or the IRA owner’s life expectancy if it is longer. See Reg 1.401(a)(9)-5 A-5.
As you mention it wouldn’t apply in this case because the IRA owner was so young.