Life Expectancy Table Question

Submitted by Kevin O'Hearn on Wed, 2022-08-10 15:05

Hello,

I have a client where one of the beneficiaries on this account is the client’s wife Nora (40%).and the other 2 beneficiaries are the clients 2 sons both 30%. Since she is not the sole primary beneficiary is that the reason why we are using the uniform table to calculate the 2022 RMD amount and not the joint life expectancy table? Thank you.



Submitted by Kevin O'Hearn on Wed, 2022-08-10 15:17

One added comment is that the wife is listed as a non-spouse on the beneficiary details. 

Submitted by David Mertz on Wed, 2022-08-10 18:01

  • Correct.  Since the client’s wife is not the sole designated beneficiary on this IRA, the Uniform Lifetime table must be used.
  • The IRA could be split into two (or three) with the wife being the sole beneficiary of one of them, allowing the Joint Life and Last Survivor Expectancy table to be used for that IRA while the Uniform Lifetime table is used for the other(s), but that would require periodic transfers keep the value remaining in the IRAs  split 40%/30%/30%.
  • Even though it’s not presently affecting the RMD calculation, the beneficiary details should be corrected to show the wife as being a spouse beneficiary.

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