Spouse 10 yrs younger rule
Some questions that came to me re: spouses 10yrs younger
1) If we have a client that has been taking RMDs for a number of years using the Uniform Life table and it was noticed that the spouse is the sole beneficiary and 10yrs younger, can the client switch to the Joint table whose spouse is 10ys younger and the sole beneficiary?
2) If not, if the client that is using the Uniform table and makes changes to his beneficiaries leaving his spouse now the sole beneficiary. Can this client now switch due to the changes?
Permalink Submitted by Alan - IRA critic on Fri, 2017-01-13 22:41
Yes, the client can change to the joint life table in 2017, and if 60 days have not yet passed from the last RMD distribution for 2016, the excess of the joint life table can be rolled back into the IRA. The joint life table only applies if the spouse is the sole beneficiary for the entire year on an IRA account, unless due to divorce or death. Therefore, if changes of beneficiaries are made on an IRA account such that the spouse was not sole beneficiary for the entire year, the joint life table does not apply.