mid year change in sole beneficiary to 15 year younger spouse

Submitted by Century Tax Services PC Hummphries on Wed, 2017-11-01 21:49

2017 is first year RMD and client chooses to take by April 1, 2018. Wife is more than 15 years younger but is not currently the sole beneficiary (beneficiary is a charity). If client changes his wife to sole beneficiary now (November 2017) can he use the joint distribution table for his 2017 RMD or does his spouse need to be sole beneficiary for entire year?



Submitted by David Mertz on Wed, 2017-11-01 22:02

The entire year.  From CFR 1.401(a)(9)-5 Q&A-4(b):

The spouse is sole designated beneficiary for purposes of determining the applicable distribution period for a distribution calendar year during the employee’s lifetime only if the spouse is the sole beneficiary of the employee’s entire interest at all times during the distribution calendar year.

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