RMD fraction recalculated?
Joe reaches 70.5 in 2012. RMD is 1/27.4 of his IRA value, correct?
For his 2013 RMD is his factor the 27.4 reduced by 1 or is it the Life Expectsncy factor for a 71 year old?
So, is RMD re-factored annually or just arithmeticaly reduced (by 1) each year?
Permalink Submitted by Alan - IRA critic on Thu, 2013-03-14 19:03
IRA owners recalculate annually by using their attained age in the Uniform Table unless they have a sole spouse beneficiary more than 10 years younger. If Joe also reached 71 by 12/31/2012, his divisor is 26.5 for 2012. 27.4 is the divisor if he does not reach 71 until 2013. The 1.0 reduction only applies to inherited IRAs for non spouse beneficiaries or non individuals.