Example for five year rule. Confused by 590 wording.
Straight from publication 590 Page 37.
“Beneficiary not an individual”
“Death on or before RBD: The entire account must be distributed by the end of the fifth year following the year of the owners death”
The wording confuses me. If the client died before his RBD in november of 2007 does it have to be distributed by 12/31/2012 or 12/31/2013?
Thanks
Permalink Submitted by Al Fry on Wed, 2008-07-02 20:02
The end of the 5th year folowing the year of death would be 12/31/12, whether the owner died in January or December of 2007. 1st=2008; 2nd=2009; 3rd=2010; 4th=2011; 5th=2012.