Quick RMD question

[Lori H]

Does the still employed father of the sole owner get an RMD at age 70.5? The father was once the owner. Not sure if the family attribution rules would still apply to the father here.

[ETA Consulting LLC]

The father is a 5% owner through attribution; so yes.

Good Luck!

[Lori H]

Thank you. Quick follow up on proper Divisor Amount.

Owner was born 9/8/42. age 70.5 3/8/13. Wife is beneficiary with DOB of 9/14/42.

Would the divisor amount not be 27.4?

Our system is calculating the RMD using 26.5

[BG5150]

You use the age of the participant at EOY. In this case, the participant is 71. You use 27.4 when someone is still 70 on 12/31, i.e. someone who turns 70 1/2 after July1.

You only take into account the spouse if the age difference is 10+ years, I believe.

[Tom Poje]

reg cite is 1.401(a)(9)-5 Q-4

use the employee's age as of the employee's birthday in the relevant distribution year

(I believe they use the term 'relevant' because if the person delays things until April 1 you don't use the April 1 year, the relevant year in that case is 'the prior year')