Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
RMDs when contigent beneficiary
Old 01-25-2016, 06:30 AM   #1
Recycles dryer sheets
 
Join Date: Apr 2004
Posts: 105
RMDs when contigent beneficiary

Figuring the required minimum distribution.

I have my spouse as the beneficiary and my son as a contingent beneficiary.
(we both pass then it all goes to my son)

Do I use both my spouse and son when calculating the RMD or only the primary (spouse) ?
__________________

__________________
bobbee25 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-25-2016, 06:39 AM   #2
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,446
I don't think the beneficiary figures into the RMD calculation if it's your iRA. The only thing that matters is your age.
__________________

__________________
MichaelB is online now   Reply With Quote
Old 01-25-2016, 06:43 AM   #3
Recycles dryer sheets
 
Join Date: Jan 2010
Posts: 174
If I understand your question, the RMD is based on the age of the person receiving the funds at the time.

Quote:
Originally Posted by bobbee25 View Post
Figuring the required minimum distribution.

I have my spouse as the beneficiary and my son as a contingent beneficiary.
(we both pass then it all goes to my son)

Do I use both my spouse and son when calculating the RMD or only the primary (spouse) ?
__________________
jwkde is offline   Reply With Quote
Old 01-25-2016, 07:50 AM   #4
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 74
Here is a link to a good "plain english" explanation of the complexities involved in computing the RMD when there is a spouse and a designated beneficiary named on the IRA. More specifically, it covers the concept of the pros/cons of changing the calculation options if the beneficiary "dies first" or not.

https://www.aaii.com/journal/article...y-designations

I hope it helps you!
__________________
DatumPoint5 is offline   Reply With Quote
Old 01-25-2016, 08:58 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,928
AFAIK there are only these 3 tables to do the calculation. Read the few descriptive words on each to see which one to use: https://www.irahelp.com/printable/20...and-tax-tables

Uniform Lifetime Table is used for the original owner unless:

Spouse is >10 yrs younger. Then use Jt. Life table for more favorable terms.

Son is a contingent beneficiary so does not come into the calculation until he actually inherits. Spouse (once they inherit) can choose to make IRA their own (be owner) and use the Uniform Lifetime Table or choose to be a beneficiary and use the Single Life Table. They would probably only choose the latter if they were younger than 59.5 and needed to take distributions w/o penalty. Note that there is a difference in how spouses use Single LifeTable compared to non-spouses (see table description).
__________________
kaneohe is offline   Reply With Quote
Old 01-25-2016, 10:26 AM   #6
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,094
the calculations are described in IRC 401(a)(9) and the associated regulations

there is also a good pub from the IRS as well


I don't think contingent beneficiaries enter into the calculation, just the direct benficiaries
__________________

__________________
Swing hard, look up
Big_Hitter is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Roth IRA RMDs, what! veremchuka FIRE and Money 11 11-24-2013 07:17 AM
Life after RMDs + SS omni550 FIRE and Money 11 04-08-2013 12:35 PM
Possible to receive both SS payments and RMDs and have Fedl bracket <25%? haha FIRE and Money 10 03-12-2013 11:22 AM
Calculating RMDs jIMOh FIRE and Money 2 08-14-2011 01:05 PM

 

 
All times are GMT -6. The time now is 07:51 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.