I have a IRA, and my sister is the named beneficiary. Next year I will be 70 so I've been investigating the RMD calculation. I've found the actuarial tables online to do the calculation but have been in discussion with someone who is telling me that my sister's age gets factored into the calculation also. The only situation where the beneficiary's age is a factor that I have found is when the beneficiary is a spouse more than 10 years younger. Am I missing something?
Calculating IRA rmd
Nov 11, 2013
2 Replies
There are three tables in Pub 590 that are used to calculate RMDs. Table I is used by someone who inherits an IRA... the beneficiary.
Table II is used by someone who has named his/her spouse as the sole beneficiary and that spouse is more than 10 years younger.
Table III is used by everyone else. I.e., you don't fall into Table I or II. Basically, that's an unmarried owner, married owner whose spouse is not more than 10 years younger and a married owner whose spouse is not the sole beneficiary.
Therefore, when you turn age 70 1/2, your RMD would be calculated by using Table III either because you are unmarried or your beneficiary is your sister.
The above answer assumes we are not dealing with an inherited IRA.
Thank you. That was my conclusion also. It is not an inherited IRA.
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