RMd

[Guest Susan M.]

Hello,

I have a participant who is deceased. In Feb 2011 this participant took his RMD for the 2011 plan year. Since his beneficiary (spouse ) is also over 70 1/2 does the spouse also have to take an RMD from the deceased account by december 2011?

or does the distribution from feb 2011 qualify?

Thank you

[Bird]

No, the first RMD on account of death is not due until next year.

[Monica Barnard]

So to expand on this and be sure I understand it correctly, let's say Mr. Smith has not yet taken his RMD this year. He has taken RMDs in previous years. Date of death is 6/1/2011. Mr. Smith's RMD for 2011 is calculated on his account balance as of 12/31/2010 based on his age in 2011, as if he were still alive. Then for 2012, the RMD is calculated on his account balance as of 12/31/2011 using the factor for his wife's age from Table I. Is this right? I read Pub. 590.

[ETA Consulting LLC]

Correct. Stated differently, once you reach your Required Beginning Date, you cannot die out of your age 70 1/2 distribution. Just think, you know your RMD on January 1st of each year, even though you have until December 31st to take it. If you die during the year without receiving it, then your beneficiary must receive it.

Hope this helps.

[Monica Barnard]

Excellent! Thanks so much.