RMD..what age with new chart?

[stevena]

I have the new chart for figuring RMD. The chart uses age..but what age? What do I do if a client is doing their 2001 RMD now, and is currently 72. But at the end of 2001, he will be 73. DO I use the age he is when he does the distribution or the age he will be at the end of 2001??? Thanks

[rcline46]

Same as before, age at beginning of year since RMD is 'due' January 1.

[Guest Judy Miller]

It's age on the birthday occurring during the "relevant distribution calendar year" - ie, attained age on the last day of the year.

[Michael Devault]

If you're interested in the cite for Judy's response, take a look at proposed regulation section 1.401(a)(9)-5, A-4(a).

[stevena]

thanks for your help...want to be sure I am doing this right...

If I am doing a 2001 RMD, I use participant's age as of 12/31/01, and account balance as of 12/31/2000 (calendar year plan)

right?

[Guest T-BONE]

Correct . . . it's important to note that the age and account balance are always determined as of 12/31 regardless of whether or not you have a calendar year plan.

[Michael Devault]

You are correct! The IRS really made it easy for us, didn't they?

[stevena]

T BONE...

WHAT IF I HAVE A PLAN WITH A PLAN YEAR END 6/30/, WHICH IS NOT VALUED ON 12/31..?

I THOUGHT I USED THE PRIOR YEAR BALANCE AS OF THE LAST VALUATION DATE IN THE PRIOR YEAR, NO?

[Guest T-BONE]

Sorry, I didn't mean to send off any alarms . . . all of the plans I work with are valuated on a daily basis. The regs state that you use the account balance as of the last valuation date in the calendar year immediately preceding that distribution year.

[stevena]

OK, PHEW!

THANKS FOR ALL YOUR HELP EVERYONE

WOW THIS IS SO MUCH EASIER NOW WITH THE NEW CHART..HOW GREAT.