RMD ESTATE BENEFICIARY
Decedent died in 2020, was born in 1933. Estate was beneficiary. Used Single life annuity table. Life expectancy was 6.7 at age 87. For 2021 subtracted one year and used 5.7 as factor. For 2022, intended to subtract 1 year and use 4.7 factor. New table was issued for 2022 and references using the life expectancy in the year after death. Using the 2022 table with a factor of 6.6 in year after death, then subtract by 1 for 5.6 factor. Is the 2022 table applicable for an existing payout and would using 5.6 be correct?
Permalink Submitted by Alan - IRA critic on Thu, 2022-12-15 23:02
Yes, the RMD divisors must be reset to the new table. That’s 7.1 for 2020, the year of death. Subtract 1.0 each year for 2021 and 2022 results in a 2022 divisor of 5.1. 5.7 was correct for 2021.