Non-Designated Beneficiary! What year is used for single life expectancy based?
IRA Owner dies at age 79 was taking RMDs! No beneficiary was listed. Court allowed the Estate executor, to divide assets equally between the two living children. We are treating them as Non-Designated Beneficiaries and wish to use the IRA owner’s
remaining single life expectancy for the children’s RMDs. Do we use the YEAR of the owner’s death or base L.E. on the year following the date of death?
Permalink Submitted by Alan - IRA critic on Wed, 2021-06-30 22:25
When the RMDs are calculated using the remaining life expectancy of the owner, the age in the year of death must be used to determine a reference point divisor. That divisor is not actually used, but is then reduced by 1.0 for each year thereafter. Therefore the first beneficiary RMD in the year after the year of death will apply a divisor that is 1.0 less than the the single life table divisor for the year of death. This is of course quite different from RMDs based on the age of the beneficiary when there is no divisor determined for the year of death.