RMD’s “uniform lifetime table” vs.joint-life-expectancy”
The client is more than ten years older than his wife. RMD’s have been taken using the uniform lifetime table.
Is there a penalty involved? or just a lost opportunity to leave more money in the IRA?
Permalink Submitted by mk foss on Mon, 2014-02-10 17:38
Absolutely no penalties. The Joint table provides a lower minimum distribution. There is no maximum distribution so anything taken in excess of the lower RMD is just a lost opportunity.
Permalink Submitted by Jose Morales on Mon, 2014-02-10 17:38
There is no penalty, as using the Uniform Lifetime Table means they will take more than they would have if they used the Joint Lifetime Table. Also, please note that in order for the IRA owner to use the Joint Lifetime Table the spouse must be more than 10 years younger AND be the sole primary named beneficiary for the entire year.
Permalink Submitted by Alan - IRA critic on Mon, 2014-02-10 19:00
If an RMD has been taken in the last 60 days including in mid to late December for 2013, the excess amount over the correct Table II amount can be rolled back into the IRA because that portion is NOT an RMD.