Non-spouse RMD’s…
Why would a custodian ask a non-spouse beneficiary whether they want to proceed with distributions under the “5 year rule?” In my case the deceased/original owner was already taking RMD’s and 79 years old. My understanding is we need to use the Single Life Table (reduction method) of the non-spouse bene. for future years. Please advise.
Permalink Submitted by Alan Spross on Wed, 2010-08-18 21:58
The custodian is misinformed because the 5 year rule only applies for deaths prior to the required beginning date. The beneficiary here can use the longer of their own non recalculated single life expectancy OR the non recalculated life expectancy remaining for the decedent. This latter option is for those few cases where the beneficiary is older than the decedent.