Single Life Expectancy Table for Inherited IRAs?
Single Life Expectancy Table for Inherited IRAs
Can someone explain how to use this table?
Designated beneficiaries use this Single Life Expectancy Table based on their age in the year after the IRA owner’s death. That factor is reduced by one for each succeeding distribution year. Spouse beneficiaries who do not elect to roll the IRA over or treat it as their own also use the single life table, but they can look up their age each year.
https://irahelp.com/printable/2015-single-life-expectancy-table
What is that unmarked column on the left of the page? Age of beneficary?
And what do you do with that number in the unmarked column in the center of the page?
Thanks
SeattleSun
Permalink Submitted by Alan - IRA critic on Sat, 2015-08-15 00:18
Yes, that column is the age of the beneficiary as of the end of the RMD distribution year. The column in the center of the page indicates the divisor used to divide into the prior year end IRA balance to get the RMD amount. Of course, there are some exceptions to these rules for certain situations. See IRS Pub 590 B.
Permalink Submitted by Richard Rea on Sat, 2015-08-15 00:31
Thanks Alan!1) I haven’t reached MRDs yet but will in 2017 and have no health problems so hope to make it to MRDs but what if I don’t does that make a difference?2) I have my 7 digit Traditional IRA split 4 equaly ways: wife, son, daughter & daughter, all are Primary Beneficiary. Have I created any issues spliting between spouce and children? 3) What else do my beneficaries need to know about Inherited IRAs.TIA
Permalink Submitted by Alan - IRA critic on Sat, 2015-08-15 01:19
Unless your wife is under 59.5 upon your death, she should roll her share over into her own IRA. The children should create separate inherited IRA accounts no later than 12/31 of the year that follows the year of your death. That will enable them to take RMDs based on their individual life expectancies. They need to understand that they can only move the funds by direct trustee transfer. They cannot take a distribution and roll it over. Your beneficiaries are also jointly responsible for completing your RMD for the year of death if you have not completed it. They should all know where you keep your IRA file so they can have the IRA re titled.
Permalink Submitted by Richard Rea on Sat, 2015-08-15 02:16
Wife now 60 & me 68 so its OK for her to roll over into her new IRA and the kids to do something different aka an “inherited IRA”. The kids are using their single life expetency table and it is slowing down MRD significantly, yes. Kids 34, 30, 30. If I am doing the math rigth my MRDs fall from like $60k/yr to theirs at $7k/yr as the IRA is slit 4 ways and they have a bigger divider based on their younger ages? How would those Inherited IRA be titled. Assume my name is Adam Smiith.
Permalink Submitted by Alan - IRA critic on Sat, 2015-08-15 04:11
Variations in titling inherited IRAs are OK as long as both the name of the beneficiary and the decedent are listed, eg “Richard Smith as beneficiary of Adam Smith” or “Adam Smith deceased FBO bene Richard Smith”. IRA custodians have their own preferences for titling inherited IRA accounts.