Daughter inherited mom’s Qualified Annuity
we have a client who inherited her mom’s qualified annuity back in 2012. Mom died 7/9/2012 (date of birth 12/19/1927). According to my notes, daughter would have started her RMDs in 2013 using the factor 21.8 decreasing each year after by 1. 2017 factor should then be 17.8. Looking at the custodian’s RMD amount of $1737.59 with a YE value of $32243.40, it looks as though the custodian used current year life expectancy of 18.6???
What are your thoughts
Permalink Submitted by David Mertz on Wed, 2017-08-16 20:10
To determine the divisor, are you sure that you are using the same YE value as was used by the custodian and are using the RMD amount as determined by the custodian? 32,243.40 / 1,737.59 = 18.55639, not 18.6 or any other multiple of 0.1, so it seems unlikely that both of these dollar amounts match those of the custodian. Given that the dollar amounts are specified to the penny, I would expect your calculation to produce a divisor that was off by no more than 0.00011 from a multiple of 0.1.