Multiple IRA beneficiaries

[Guest Rick]

I caught part of a news story that described a change in the way the IRS calculates IRA distributions for multiple beneficiaries. The "old" formula used the age of the oldest person in the case of two or more beneficiaries. This new ruling allows the youngest age to be used instead. Any clarification on this?

[BPickerCPA]

It's not the youngest, it's that each beneficiary can use their OWN life expectancy, rather the life expectancy of the oldest.

The ruling ONLY applies to where the IRA holder dies BEFORE the required beginning date. Not a recommended form of tax planning.