RMD
I have a client who is 70 this year. He says his IRA account are
setup jointly with his 40 year old son, so that RMD would be computed
on his and son’s joint age? Is this possible?
Tom
I have a client who is 70 this year. He says his IRA account are
setup jointly with his 40 year old son, so that RMD would be computed
on his and son’s joint age? Is this possible?
Tom
Permalink Submitted by Alan Spross on Sat, 2008-03-08 01:37
The account must be registered to the client only. However, it is possible to have an IRA annuity RMD structured over the joint lives of the owner and a spousal or non spouse beneficiary, with an adjustment made for the age difference. See pages 1088 and 1089 and perhaps the easier to understand summary statements at the beginning of the Regs relating to annuity or DB plan RMDs. These also apply to IRAs as indicated. An example on p 1089 actually uses an owner of 70 and beneficiary of 40:
http://www.irs.gov/pub/irs-irbs/irb04-26.pdf