rmd for deceased participant

[Lori H]

participant died 3/30/06 would have been 79 on 4/24/06. last year her 2005 rmd was based on age 78 with a divisor of 20.3. calendar year plan. would i use the divisor for age 79(19.5) for her 2006 rmd and switch to husbands divisor next year. husband is beneficiary who is also 79 this year.

[Lori H]

should the account balances as of 12/31/05 be combined and he take a rmd based on that amount?

[Bird]

It's still calculated as a lifetime RMD in 2006, so you use the uniform lifetime table (19.5). If it hasn't been paid out yet, then it's paid to her beneficiary.

What happens next year depends on what may or may not happen before Sept 30, 2007, the day the designated beneficiary is determined. Let's just say the easiest thing is if the husband rolls over the remaining balance before 12/31/06, then it becomes part of his account for purposes of determining his 2007 RMDs.

Not sure about the additional question but I think the answer is "no."

[Lori H]

2006 rmd will go to beneficiary and then remaining account balance to husband who is beneficiary. thank you bird.

[Guest mjb]

Lori: I dont understand your response. Why does 2006 mrd go to beneficary and not to Husband if he is the bene under deceased's IRA who will receive account balance? Who has the ownership right to IRA after owner's death?

[Lori H]

sorry, may i said husband and beneficiary one too many times. the husband IS the beneficiary of her 401(k), he gets her 2006 rmd and then the remaining account balance. wondering: she died prior to attaining age 79, yet still use 79 divisor factor????