EDB – Single Life Expectancy
There was a rule to use SLE – beneficiary age as-of year of death and reevaluated each year or the deceased account holder’s remaining life expectancy, whichever is longer.
Post SECURE Act for EDB this will this no longer be needed? Because for 10 year younger beneficiary it will be anyway Beneficiary Age.
Permalink Submitted by Alan - IRA critic on Mon, 2020-02-10 15:51
Assuming the beneficiary qualifies as an EDB, they can continue to use their single life expectancy (non recalculated and reduced by 1.0 each year). It is not clear whether the EDB will be able to opt for use of the decedent’s LE if longer (non DB rules). This question applies to beneficiaries older than the decedent, but in the past this was allowed under the IRS Regs, not the tax code. SInce the Regs are going to have to be re written to some degree because of Secure, the IRS will probably try to come up with an equitable solution so that non DBs do not get a longer stretch than EDBs or DBs.
Permalink Submitted by Adman Gilly on Wed, 2020-02-12 13:40
Sounds good, hope IRS addresses these.. thanks a lot!