Required Minimum Distributions

[pgold]

In a 401K plan there are 3 ben. (1 spouse age 60, 2 children age 30 and 40),

The participant is receiving RMD.

If participant dies can the ben. use there own age to calculate RMD?

If they can't what age must be used?

How would it be different if spouse was sole ben?

[masteff]

Depends on how the plan handles it. The MRD for each beneficiary can be figured separately for that bene provided the plan uses separate accounting as per Reg 1.401(a)(9)-8 Q&A-2 & -3 If the plan does not use separate accounting then per Reg 1.401(a)(9)-5 Q&A-7, the shortest life expectancy of the bene's is used.

Some plans literally set up a separate account in the plan for each bene under the bene's SSN.

http://benefitslink.com/boards/index.php?/topic/53257-retitling-deceased-ppts-acct-in-name-of-spouse-as-beneficiary/

[pgold]

If the account of the deceased participant was rolled over to each bene,

can you use each bene life expectancy to calculate RMD?

Depends on how the plan handles it. The MRD for each beneficiary can be figured separately for that bene provided the plan uses separate accounting as per Reg 1.401(a)(9)-8 Q&A-2 & -3 If the plan does not use separate accounting then per Reg 1.401(a)(9)-5 Q&A-7, the shortest life expectancy of the bene's is used.

Some plans literally set up a separate account in the plan for each bene under the bene's SSN.

http://benefitslink.com/boards/index.php?/topic/53257-retitling-deceased-ppts-acct-in-name-of-spouse-as-beneficiary/

[masteff]

Each beneficiary rolling their portion into a separate account would satisfy the Reg that I cited allowing them to each calculate their MRD separately from the other benes.