J&S percentage limit with large age differences

[dan.jock]

Is anyone aware if Internal revenue bulletin 2004-26 has been updated for max J&S percentages for larger age differences with non-spouse beneficiaries? 12 years is a long time. Does there exist a table for spousal bene's with large differences?

Thx

[Mike Preston]

IRB 2004-26 published Treasury Decision 9130 which essentially just update the regulations under 401(a)(9) to remove Regulation Section 1.401(a)(9)-6T and insert Regulation Section 1.401(a)(9)-6.

And, no, there haven't been any changes to that regulation.

And, no, 12 years is not a long time, as these things go.

[Mike Preston]

As far as age differences go, you need something larger than a 44 year age difference? What are you referring to when asking about spousal age differences? You just use the MDIB factors no matter the age difference when dealing with a spouse.

[My 2 cents]

As far as age differences go, you need something larger than a 44 year age difference? What are you referring to when asking about spousal age differences? You just use the MDIB factors no matter the age difference when dealing with a spouse.

1. Don't the MDIB restrictions flatten out for non-spouse beneficiaries (such as grandchildren)? More than 43 year difference = 52% joint continuation percentage is OK. Does the present value of benefits expected to be paid to the participant still have to be at least 50% of the total?

2. Absolutely positively, a 65 year old participant with a 30 year old spouse can elect a 100% joint form. Can an 87 year old participant with a 30 year old spouse do so? The MDIB table applying limits on the continuation percentage based on age differential is not applicable when the joint annuitant is the participant's spouse.