RMD Table
Hello –
In light of the new RMD tables for 2022:
1. Is this at all relevant for a non eligible designated beneficiary (e.g. a non-spouse who isn’t disabled and isn’t a minor) considering they must take the entire distribution by the end of year 10? Or is it solely applicable to an account owner and eligible designated beneficiary?
2. For a non eligible designated beneficiary (e.g. healthy non-spouse) who is taking distributions from a pre-Secure Act death, since they only used the Single Life Table for their initial year RMD (year after death) and have been subtracting by 1 thereafter, are they affected by this? If so, do they go to their age in 2022 and use that life expectancy factor reduced by 1 in 2023 and thereafter?
Thanks!
Jason
Permalink Submitted by Alan - IRA critic on Tue, 2021-01-19 02:00
The 2022 tables apply in the same manner as the current tables, just the divisors are slightly higher and the Uniform Table starts at age 72. These tables do not apply for designated beneficiaries who inherited after 2019 who are not EDBs, although there are other uses such as for non individual beneficiaries and successor beneficiaries when designated beneficiary (as well as owner) passed prior to 2020.
This beneficiary will need to “reset” their divisor for the new tables starting in 2022, by determining what their first divisor would have been using the new tables for their first beneficiary RMD, then subtracting 1.0 for each year thereafter to get to their new divisor for 2022. They do not use the actual 2022 divisor unless decedent passed in 2021.