Joint RMD Calculation (spouse More Than 10 Years Younger)

Sep 27, 2016

  1. MidwestDrummer
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    MidwestDrummer New Member

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    I just discovered this forum and this is my first post. I did use the search feature as well, but came up empty.

    My uncle has a traditional IRA fixed annuity and has been taking his RMD using a single life expectancy calculation. He turned 78 this year, which gives an RMD factor of 20.3 using life-expectancy table III (Uniform Lifetime Table). I discovered that my aunt (his legal spouse and sole primary beneficiary) is more than 10 years younger than him (10 years and 37 days to be exact), which may allow a reduced RMD calculation under life-expectancy table II (Appendix B, Joint Life and Last Survivor Expectancy). However, when I look at at both of their ages (78 and 68) on table II, it shows the exact same RMD factor (20.3) as it did when looking only at my uncle's age on table III.

    This brings me to my actual questions. Is the eligibility for the joint RMD calculation based only on whole years? Instead of my aunt being 10 years and 37 days younger than my uncle, would she actually need to be 11 years or more younger?

    Thanks in advance!
     
  2. unic.consulting
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    unic.consulting Guru

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    When are their birthdays? I haven't run into this issue personally, but from everything I've read, the ages should be calculated on December 31 just like the value of the IRA is. If he's 78 and she's 67 on that date, then you'd be able to reduce the RMD by 0.7, saving about $1.60 for every thousand that is in the IRA.
     
  3. MidwestDrummer
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    MidwestDrummer New Member

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    My uncle's DOB is 07/27/1938 (currently 78) and my aunt's DOB is 09/02/1948 (currently 68). They would still be 78 and 68 on 12/31/2016. I just wasn't sure what specific item the IRS refers to when determining joint RMD eligibility. If it's strictly based on age as of 12/31, then she technically wouldn't be considered more than 10 years younger than him, even though she is if you're looking specifically at their DOB's.
     
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