Permalink Submitted by gautam SHAH on Tue, 2022-01-11 15:28
Thank you. we are INDIANA resident and will be moving to FLORIDA and become resident in 3 months are these community property states? will custodian at swab allow switch of beneficiary from spouse by splitting account to 4 parts?
Permalink Submitted by Alan - IRA critic on Tue, 2022-01-11 19:50
Neither of those states are community property states, they are “common law” states. All IRA custodians allow a change of beneficiary at any time in common law states. If your spouse is the sole beneficiary and more than 10 years younger than you, a change of beneficiary will increase your RMD by requiring use of the Uniform Table rather than the joint life table.
Permalink Submitted by Alan - IRA critic on Tue, 2022-01-11 21:12
Use the Uniform Table, which determines the correct RMD. If you used the single life table your distribution would be much higher than the actual RMD. Of course, you can exceed your actual RMD anytime you wish, you just cannot distribute less than your actual RMD from the Uniform table.
Permalink Submitted by Alan - IRA critic on Mon, 2022-01-10 20:53
Consent of the spouse is not required for IRAs except in community property states.
Permalink Submitted by gautam SHAH on Tue, 2022-01-11 15:28
Thank you. we are INDIANA resident and will be moving to FLORIDA and become resident in 3 months are these community property states? will custodian at swab allow switch of beneficiary from spouse by splitting account to 4 parts?
Permalink Submitted by Alan - IRA critic on Tue, 2022-01-11 19:50
Neither of those states are community property states, they are “common law” states. All IRA custodians allow a change of beneficiary at any time in common law states. If your spouse is the sole beneficiary and more than 10 years younger than you, a change of beneficiary will increase your RMD by requiring use of the Uniform Table rather than the joint life table.
Permalink Submitted by gautam SHAH on Tue, 2022-01-11 21:04
Thank you. my wife is 3 years younger. this year i have to take RMD is it better to use uniform table or just mine alone.
Permalink Submitted by Alan - IRA critic on Tue, 2022-01-11 21:12
Use the Uniform Table, which determines the correct RMD. If you used the single life table your distribution would be much higher than the actual RMD. Of course, you can exceed your actual RMD anytime you wish, you just cannot distribute less than your actual RMD from the Uniform table.