inherited IRA company says you use deceased factor and new factor
We have a client with an inherited IRA. She will be 77 in November and the factor on the inherited IRA is 12.1.
You do use the age this year and not what she is now which would be 76, correct?
Her yr end value was $53065.84 divided by 12.1 (77) = $4385.61 RMD for 2014
the company is stating her RMD is $4654.90. They are stating that you have to take the deceased age into consideration along with the inherited persons age.
Am I wrong or do they have it correct?
If I’m right, can you send me any rule on this so I can send to them?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Fri, 2014-04-25 20:10
A divisor of 12.1 suggests the owner died in 2013. The IRA custodian divisor suggests owner passed in 2011 and beneficiary RMDs began in 2012 when beneficiary was 75. Is this the case? If so, then the beneficiary used 13.4 as initial divisor in 2012 which would then be reduced by 1.0 each year to 11.4 in 2014.