Option 3 - Mar/Apr 2000
Option 3:
Option 3: Distribute the account over Bill's and Mary's life
expectancies, with recalculation of only Mary's life expectancy.
1. This approach can usually be dismissed from consideration quickly. If Mary
survives Bill, the example assumes that spousal rollover would occur.
Recalculating Mary's life expectancy offers no advantage from that
perspective. If one thought Mary might predecease Bill, recalculating
Mary's life expectancy is unwise compared with Options 2 and 4.
2. Bill's fixed life expectancy yields a 15 year period. Therefore, if Mary
dies in 2010 and Bill is the surviving spouse, he will have to fully
distribute the account by 2014.
(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 | Spouse ¬ 1. Alive | Spouse Deceased |
1999 | 71 | 65 | 4.385965% | N/A |
2000 | 72 | 66 | 4.629630% | 6.993007% ¬ 2. |
2001 | 73 | 67 | 4.807693% | 7.518797% |
2002 | 74 | 68 | 5.076142% | 8.130081% |
2003 | 75 | 69 | 5.319149% | 8.849558% |
2004 | 76 | 70 | 5.617978% | 9.708738% |
2005 | 77 | 71 | 5.952381% | 10.752688% |
2006 | 78 | 72 | 6.289308% | 12.048193% |
2007 | 79 | 73 | 6.666667% | 13.698630% |
2008 | 80 | 74 | 7.092198% | 15.873015% |
2009 | 81 | 75 | 7.518797% | 18.867924% |
2010 | 82 | 76 | 8.064516% | 23.255814% |
2011 | 83 | 77 | 8.620689% | 30.303030% |
2012 | 84 | 78 | 9.259259% | 43.478260% |
2013 | 85 | 79 | 9.900990% | 76.923080% |
2014 | 86 | 80 | 10.526316% | 100.000000% ¬ 2. |
2015 | 87 | 81 | 11.235955% | 100.000000% |
2016 | 88 | 82 | 11.904762% | 100.000000% |
2017 | 89 | 83 | 12.658228% | 100.000000% |
2018 | 90 | 84 | 13.513514% | 100.000000% |
2019 | 91 | 85 | 14.492754% | 100.000000% |
2020 | 92 | 86 | 15.384615% | 100.000000% |
2021 | 93 | 87 | 16.393442% | 100.000000% |
2022 | 94 | 88 | 17.543859% | 100.000000% |
2023 | 95 | 89 | 18.867924% | 100.000000% |
2024 | 96 | 90 | 20.000000% | 100.000000% |
2025 | 97 | 91 | 21.276596% | 100.000000% |
2026 | 98 | 92 | 22.727272% | 100.000000% |
2027 | 99 | 93 | 24.390244% | 100.000000% |
2028 | 100 | 94 | 25.641026% | 100.000000% |
2029 | 101 | 95 | 27.027027% | 100.000000% |
2030 | 102 | 96 | 29.411764% | 100.000000% |
2031 | 103 | 97 | 31.250000% | 100.000000% |
2032 | 104 | 98 | 33.333332% | 100.000000% |
2033 | 105 | 99 | 35.714287% | 100.000000% |
2034 | 106 | 100 | 37.037037% | 100.000000% |
2035 | 107 | 101 | 40.000000% | 100.000000% |
2036 | 108 | 102 | 43.478260% | 100.000000% |
2037 | 109 | 103 | 47.619049% | 100.000000% |
2038 | 110 | 104 | 52.631580% | 100.000000% |
2039 | 111 | 105 | 55.555557% | 100.000000% |
2040 | 112 | 106 | 62.500000% | 100.000000% |
2041 | 113 | 107 | 71.428574% | 100.000000% |
2042 | 114 | 108 | 76.923080% | 100.000000% |
2043 | 115 | 109 | 90.909088% | 100.000000% |
2044 | 116 | 110 | 100.000000% | 100.000000% |
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