Which IRS table for RMD’s
In 2004 husband dies (after RBD) and his wife is beneficiary. Her account is then titled,
“Wife Name, Inherited IRA of husband IRA”. Which IRS table should be used for the RMD’s going forward? Single Life for beneficiaries or Uniform Table?
Permalink Submitted by Alan - IRA critic on Wed, 2012-12-19 17:35
Single life table used each year. 1.0 reduction does not apply to sole spouse beneficiary.Why hasn’t she rolled over to her own name? Is she under 59.5 and needs distributions? Rolling over to her own IRA would result in Uniform Table, lower RMDs and better stretch terms for HER successor beneficiaries. How old is she now?
Permalink Submitted by Kristin Rasmussen on Wed, 2012-12-19 17:40
I don’t know why the IRA wasn’t rolled to her own name (before my involvment) Unfortunatly She is now deceased (Aug 2012) and I am working with her children. I take it this means the children will need to calculate their RMDs based on her schedule, the single life each year less 1?
Permalink Submitted by Alan - IRA critic on Wed, 2012-12-19 17:51
Probably. But there is a default rule that states if the surviving spouse fails to take their RMD as beneficiary in any year, her status is changed to that of owner. If she became the owner under this rule, her beneficiaries (if SHE named them) will be able to use their own life expectancies if they create separate accounts before 12/31/2013. It should not be that difficult to determine if she took her full RMD in 2005-2011 (except RMD waiver year 2009). It may take some convincing it that can be proven to get the IRA custodian to put the IRA in her name this year and it would also reduce the year of death RMD if it was not completed to date.