## Option 1:

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Option 1:

Distribute the account over Bill's and Mary's life

```
```

expectancies, with recalculation of both life expectancies.

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```

1.

If Mary is the surviving spouse, she can roll over the IRA.

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```

2.

Calculating the MRDs using the joint life expectancies of Bill and Mary,

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```

with full recalculation, results in the smallest required distributions

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```

while both spouses are alive.

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```

3.

If Mary predeceases Bill, her life expectancy is reduced to zero in the

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```

year following death. MRDs are thereafter calculated based solely on Bill's

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```

life expectancy (as if he did not have a designated beneficiary). When

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Bill dies, 100% of the account must be distributed and taken into income.

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```

This is the pitfall of recalculation.

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(see number references on chart below)

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```

Bill's Birth Date:                                    08/01/1928

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Beneficiary Type:                                  Bill's spouse, Mary

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```

Mary's Birth Date:                                 05/22/1934

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```

First Distribution Calendar Year:             1999

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```

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% ``` ``` ------ ``` ``` ---- ``` ``` ---- ``` ``` --------- ``` ``` -------- ``` ``` -------- ``` ``` -------- ```