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Multiple beneficiaries required minimum distribution


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Person  A dies in 2016 after taking his required minimum distribution.  The beneficiaries are his two children.  As of 12/31/16 the account had not yet been divided into separate accounts.

It is my understanding that for 2017 he RMD is based on the oldest child's life expectancy and that a separate calculation is not required for each child.  Am I correct on that?

Thank you for any guidance.

 

 

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  • david rigby changed the title to Multiple beneficiaries required minimum distribution

The 2017 RMDs will be based on who the beneficiaries are on September 30, 2017.

So if the account is still undivided then you're correct, use the life expectancy of the oldest beneficiary.

But if the account has been divided then you're able to use the separate life expectancy of each beneficiary.

The rule provides a nice grace period to do some after death planning and is particularly helpful where one of the beneficiaries is not a living person with a life expectancy (such as a charity) 

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