MDIB – Minimum Distribution Indcidental Benefit
Does the minimum distribution table for an IRA in which the non-spouse beneficiary (child) is 40 years younger than the IRA account use a different table for distributions than the single life table?
Same question regarding a TDA (tax deferred annuity) account holder for a retired teacher.
Permalink Submitted by Alan - IRA critic on Fri, 2014-04-04 18:09
The single life table (Table I in Pub 590) applies to all beneficiary distributions for IRAs and qualified plans including 403b contracts. Non qualified annuities are not subject to these tables, but the insuror can adopt them if they wish to offer a life expectancy option to the beneficiary.