Option 1 - Mar/Apr 2000
Option 1:
Option 1:
Distribute the account over Bill's and Mary's life
expectancies, with recalculation of both life expectancies.
1.
If Mary is the surviving spouse, she can roll over the IRA.
2.
Calculating the MRDs using the joint life expectancies of Bill and Mary,
with full recalculation, results in the smallest required distributions
while both spouses are alive.
3.
If Mary predeceases Bill, her life expectancy is reduced to zero in the
year following death. MRDs are thereafter calculated based solely on Bill's
life expectancy (as if he did not have a designated beneficiary). When
Bill dies, 100% of the account must be distributed and taken into income.
This is the pitfall of recalculation.
(see number references on chart below)
Bill's Birth Date: 08/01/1928
Beneficiary Type: Bill's spouse, Mary
Mary's Birth Date: 05/22/1934
First Distribution Calendar Year: 1999
Required Beginning Date: 04/01/2000
Year
|
Owner
Age
|
Beneficiary
Age
|
Both
Alive
|
Owner
Deceased
|
Beneficiary
Deceased
|
Both
Deceased
|
1999
|
71
|
65
|
4.385965%
|
N/A
¬
1.
|
6.535948%
|
N/A
|
2000
|
72
|
66
|
4.566210%
|
5.208333%
|
6.849315%
|
100.000000%
|
2001
|
73
|
67
|
4.761905%
|
5.434783%
|
7.194244%
|
100.000000%
|
2002
|
74
|
68
|
4.950495%
¬
2.
|
5.681818%
|
7.575758%
|
100.000000%
|
2003
|
75
|
69
|
5.181347%
|
5.952381%
|
8.000000%
|
100.000000%
|
2004
|
76
|
70
|
5.405406%
|
6.250000%
|
8.403361%
|
100.000000%
|
2005
|
77
|
71
|
5.649717%
|
6.535948%
|
8.928572%
¬
3.
|
100.000000%
|
2006
|
78
|
72
|
5.917160%
|
6.849315%
|
9.433962%
|
100.000000%
|
2007
|
79
|
73
|
6.211180%
|
7.194244%
|
10.000000%
|
100.000000%
|
2008
|
80
|
74
|
6.493506%
|
7.575758%
|
10.526316%
|
100.000000%
|
2009
|
81
|
75
|
6.849315%
|
8.000000%
|
11.235955%
|
100.000000%
|
2010
|
82
|
76
|
7.194244%
|
8.403361%
|
11.904762%
|
100.000000%
|
2011
|
83
|
77
|
7.575758%
|
8.928572%
|
12.658228%
|
100.000000%
|
2012
|
84
|
78
|
8.000000%
|
9.433962%
|
13.513514%
|
100.000000%
|
2013
|
85
|
79
|
8.474576%
|
10.000000%
|
14.492754%
|
100.000000%
|
2014
|
86
|
80
|
8.928572%
|
10.526316%
|
15.384615%
|
100.000000%
|
2015
|
87
|
81
|
9.433962%
|
11.235955%
|
16.393442%
|
100.000000%
|
2016
|
88
|
82
|
10.000000%
|
11.904762%
|
17.543859%
|
100.000000%
|
2017
|
89
|
83
|
10.638298%
|
12.658228%
|
18.867924%
|
100.000000%
|
2018
|
90
|
84
|
11.363636%
|
13.513514%
|
20.000000%
|
100.000000%
|
2019
|
91
|
85
|
12.048193%
|
14.492754%
|
21.276596%
|
100.000000%
|
2020
|
92
|
86
|
12.820513%
|
15.384615%
|
22.727272%
|
100.000000%
|
2021
|
93
|
87
|
13.513514%
|
16.393442%
|
24.390244%
|
100.000000%
|
2022
|
94
|
88
|
14.492754%
|
17.543859%
|
25.641026%
|
100.000000%
|
2023
|
95
|
89
|
15.384615%
|
18.867924%
|
27.027027%
|
100.000000%
|
2024
|
96
|
90
|
16.393442%
|
20.000000%
|
29.411764%
|
100.000000%
|
2025
|
97
|
91
|
17.241379%
|
21.276596%
|
31.250000%
|
100.000000%
|
2026
|
98
|
92
|
18.518518%
|
22.727272%
|
33.333332%
|
100.000000%
|
2027
|
99
|
93
|
19.607843%
|
24.390244%
|
35.714287%
|
100.000000%
|
2028
|
100
|
94
|
20.833334%
|
25.641026%
|
37.037037%
|
100.000000%
|
2029
|
101
|
95
|
22.222221%
|
27.027027%
|
40.000000%
|
100.000000%
|
2030
|
102
|
96
|
23.809525%
|
29.411764%
|
43.478260%
|
100.000000%
|
2031
|
103
|
97
|
25.641026%
|
31.250000%
|
47.619049%
|
100.000000%
|
2032
|
104
|
98
|
27.027027%
|
33.333332%
|
52.631580%
|
100.000000%
|
2033
|
105
|
99
|
29.411764%
|
35.714287%
|
55.555557%
|
100.000000%
|
2034
|
106
|
100
|
32.258064%
|
37.037037%
|
62.500000%
|
100.000000%
|
2035
|
107
|
101
|
34.482758%
|
40.000000%
|
71.428574%
|
100.000000%
|
2036
|
108
|
102
|
37.037037%
|
43.478260%
|
76.923080%
|
100.000000%
|
2037
|
109
|
103
|
41.666668%
|
47.619049%
|
90.909088%
|
100.000000%
|
2038
|
110
|
104
|
45.454544%
|
52.631580%
|
100.000000%
|
100.000000%
|
2039
|
111
|
105
|
50.000000%
|
55.555557%
|
100.000000%
|
100.000000%
|
2040
|
112
|
106
|
58.823528%
|
62.500000%
|
100.000000%
|
100.000000%
|
2041
|
113
|
107
|
66.666664%
|
71.428574%
|
100.000000%
|
100.000000%
|
2042
|
114
|
108
|
76.923080%
|
76.923080%
|
100.000000%
|
100.000000%
|
2043
|
115
|
109
|
90.909088%
|
90.909088%
|
100.000000%
|
100.000000%
|
2044
|
116
|
110
|
100.000000%
|
100.000000%
|
100.000000%
|
100.000000%
|
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|
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|
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|
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|
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