rmd/multiple benes

Submitted by jeffrey brown on Tue, 2015-06-30 01:19

Husband, wife and two sons. Wife is more than 10 years younger than husband. One IRA but different account numbers for each bene within the IRA. To calculate RMD while living do we use separate factors?



Submitted by Alan - IRA critic on Tue, 2015-06-30 02:01

  • If it is a single IRA account, the separate account rules can be used to create separate inherited IRA accounts for each beneficiary. The non spouse beneficiaries would each use their own single life expectancy for RMDs (Table I), as would the surviving spouse until the surviving spouse decided to roll over her share to her own IRA.
  • In addition, if the separate inherited IRA accounts are created by the deadline, the surviving spouse can be treated as the sole beneficiary and if her husband passed prior to his RBD, she does not have to start inherited IRA RMDs until the year he would have reached 70.5.

Submitted by jeffrey brown on Tue, 2015-06-30 05:46

Thank you. What factor for RMD does the owner use during his lifetime?

Submitted by Jose Morales on Tue, 2015-06-30 16:54

This is assuming that you are talking about the IRA owners RMD and not about inherited IRAs.  You would need to confirm is the IRA Custodian views each separate account as being part of the same IRA plan or if they are all separate IRA Plans as well as being separate accounts.  If they are all part of the same plan then only the uniform lifetime table can be used for determining the IRA owner’s RMD, as the spouse is not the sole primary beneficiary for the entire year.  If they are in fact maintained as separate plans as well as accounts, then the IRA owner could use the joint table for the plan with the spouse as the sole primary beneficiary and the uniform lifetime table for the two accounts with the children as beneficiaries.

Submitted by Alan - IRA critic on Tue, 2015-06-30 16:14

Owner uses Table III with new divisor each year. Table II does not apply because spouse was not the sole designated beneficiary. If owner passed after his required beginning date, the year of death RMD must be taken out by the beneficiarys, otherwise there is no year of death RMD.

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