Beneficiary is 10 years younger than her spouse
I have a client that is 10 years older than his spouse…the rules state that if the spouse is the “Sole” beneficiary the Joint Life table should be used for calculating the RMD. Does this mean the spouse can only be the primary beneficiary with no contingents or can there be contingents listed with the spouse ONLY being the primary beneficiary. Can you please clarify what “Sole” means
Thanks
Permalink Submitted by Alan - IRA critic on Wed, 2015-01-21 19:42
It means sole primary beneficiary. Contingent beneficiaries do not affect the owner’s RMDs. That said, the client will still use the Uniform Table because his sole beneficiary spouse is 10 years younger, not MORE THAN 10 years younger which is a requirement to use the Joint Life Table. Note that the Uniform Table is calculated using a joint life expectancy of a beneficiary exactly 10 years younger.
Permalink Submitted by Wendy Mommaerts on Wed, 2015-01-21 20:44
So you are saying if my client ‘s spouse is 10 years younger we use the Uniform Table…if our client’s spouse is 11 years younger I can then use the Joint tabe
Permalink Submitted by Alan - IRA critic on Wed, 2015-01-21 23:00
Correct. For exactly 10 years younger the RMD divisor is the same using either the joint or Uniform Table, but Uniform Table is easier to use.
Permalink Submitted by Wendy Mommaerts on Tue, 2018-02-13 15:26
what table would the spouse use if they are 10 yrs and 2 days younger? Or…do we use what the age of the client would be by 12/31?
Permalink Submitted by Alan - IRA critic on Tue, 2018-02-13 15:53
Use the ages on 12/31 of the RMD distribution year. If IRA owner was born on 12/30/1936 and spouse on 1/1/1947, then Table II would apply because on 12/31, the owner is 11 years older (spouse more than 10 years younger even through actaul difference is 10 years, 2 days).