RMD for Successor Beneficiary

Submitted by Edward Czapor on Sat, 2014-11-22 16:32

Surviving sole beneficiary spouse chooses to remain a beneficiary. The SS starts RMD’s in year deceased spouse would have turned 701/2 using a recalculated factor. I believe a successor beneficiary would look up the recalculated factor in year of death, subtracting 1 for first RMD in year after death, and again for each subsequent year.

In other words the recalculated factor becomes the set term for the successor and any subsequent beneficiaries. Is this correct?

Ed C.



Submitted by Alan - IRA critic on Sat, 2014-11-22 19:13

Ed, yes that is correct per IRS Reg 1.401(a)(9)-5, Q &A 5, copied below:

(2) Spouse designated beneficiary. If the surviving spouse of the employee is the employee’s sole beneficiary, the applicable distribution period is measured by the surviving spouse’s life expectancy using the surviving spouse’s birthday for each distribution calendar year after the calendar year of the employee’s death up through the calendar year of the spouse’s death. For calendar years after the calendar year of the spouse’s death, the applicable distribution period is the life expectancy of the spouse using the age of the spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each calendar year that has elapsed after the calendar year of the spouse’s death.

Submitted by Edward Czapor on Sat, 2014-11-22 20:37

Thank you Alan,I would guess that a set term is often mistakenly used in this less common situation, with the ability to racalculate missed.

Submitted by Alan - IRA critic on Sat, 2014-11-22 22:51

Yes, the SS likely often misses the recalc benefit. And the successor beneficiary may be prone to going back to the first year RMD divisor for the SS and then reducing that by 1.0 for each year after the SS inherited. That would result in a larger distribution than required for the successor beneficiary.

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