RMD computation
Husband died in 2012 at age 76. Wife is 1 year younger. Husband had 2 IRAs, 1 was $1m and beneficiaries are wife and Revocable Tr. The other IRA of $500k the Rev TR is the sole bene. The wife is the income bene of the Rev TR during her life.
In 2013, wife will be 76. I am looking for confirmation on my RMD for the IRAs held by the Rev TR. Per the Single life table, 76 has a life exp of 12.7. therefore, I calculate that the RMD from the Inherited IRAs held by the TR are as follows:
For 2013, 12/31/12 balance * 1/12.7
For 2014, 12/31/13 balance * 1/11.7
For 2015, 12/31/14 balance * 1/10.7
I believe that I use the table for 2013, then just subtract 1 for every subsequent yr.
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The wife was the 1/2 beneficiary of the $1m IRA and it was transferred into a Spousal IRA. For the RMD, do I use the Uniform Lifetime Table? The table shows the age of employee and distribution period as follows, at 76 use 22, 77 use 21.2, 78 use 20.3. So do I calculate each RMD as follows:
For 2013, 12/31/12 balance * 1/22
For 2014, 12/31/13 balance * 1/21.2
For 2015, 12/31/14 balance * 1/20.3
Thank you!
Permalink Submitted by mk foss on Mon, 2012-12-31 22:41
Everything appears to be correct. For the trust, this assumes that the surviving spouse is the oldest beneficiary. If she is not the oldest beneficiary, you would use the decedent’s life expectancy.By spousal IRA, I assume that you mean rollover IRA. The calculations are correct for a rollover IRA; the uniform table is used for a rollover IRA.Also I assume that the decedent had taken his RMD before he passed away. If he did not, enough funds from the various IRAs must be withdrawn to satisfy his RMD.