Beneficiary Distributions Flashcards
Stanley’s date of death was February 7, 2023. His three children,Vince, age 58, Carla, age 55, and Jennifer, age 53, are his primary beneficiaries.
Vince withdrew his entire share on July 23, 2023. Carla passed away on March 2, 2024. Jennifer’s portion of the IRA balance on October 1, 2024, is $17,291. When is the determination date?
9/30/2024
Stanley’s date of death was February 7, 2023. His three children,Vince, age 58, Carla, age 55, and Jennifer, age 53, are his primary beneficiaries.
Vince withdrew his entire share on July 23, 2023. Carla passed away on March 2, 2024. Jennifer’s portion of the IRA balance on October 1, 2024, is $17,291. Who is considered a designated beneficiary as of the determination date?
Carla and Jennifer
Henrietta was born on September 4, 1978, and died on January 10,2024. Her IRA beneficiaries include her husband, George, and her three children, Victoria, Charles, and James. All beneficiaries have a balance in Henrietta’s IRA on the determination date. Their birthdates are as follows.
George’s date of birth is April 8, 1977.
Victoria’s date of birth is November 29, 2011.
Charles’ date of birth is October 27, 2013.
James’ date of birth is July 22, 2015.
What is the deadline to establish separate accounting?
December 31, 2025
Henrietta was born on September 4, 1978, and died on January 10,2024. Her IRA beneficiaries include her husband, George, and herthree children, Victoria, Charles, and James. All beneficiaries havea balance in Henrietta’s IRA on the determination date. Their birthdates are as follows.
George’s date of birth is April 8, 1977.
Victoria’s date of birth is November 29, 2011.
Charles’ date of birth is October 27, 2013.
James’ date of birth is July 22, 2015.
If separate accounting is established by the deadline, whose life expectancy would be used to calculate life expectancy payments?
Each beneficiary would have payments calculated on their own life expectancy
Doris, an IRA owner, died on April 10, 2024 age 65. She was born September 17, 1959. Her beneficiary is her husband, Leonard, born October 6, 1957 age 67, who has always been the IRA beneficiary. If Leonard chooses to take life expectancy payments as beneficiary of Doris’ IRA, by when does he have to take his first life expectancy payment?
December 31, 2031
(later of: 12/31 year following IRA owner’s death OR 12/31 year IRA owner would have been age 72)
YES STILL 72
Doris, an IRA owner, died on April 10, 2024 age 65. She was born September 17, 1959. Her beneficiary is her husband, Leonard, born October 6, 1957 age 67, who has always been the IRA beneficiary. What life expectancy factor should be used in the first year of payment for Leonard, assuming he delays life expectancy payments to the year of the deadline?
15.6
(using single life expectancy table, Leonard is age 74 by 12/31/2031,when deceased would have been age 72)
*still 72
Doris, an IRA owner, died on April 10, 2024 age 65. She was born September 17, 1959. Her beneficiary is her husband, Leonard, born October 6, 1957 age 67, who has always been the IRA beneficiary. Using prior-year 12/31 balance of $179,250, what is the life-expectancy payment amount for Leonard in year one?
179,250 / 15.6 = 11,490.38
Deceased reaches age 72 in 2031 using single life expectancy for spouse bene age 74 in 2031 distribution factor is 15.5
*still age 72
Doris, an IRA owner, died on April 10, 2024 age 65. She was born September 17, 1959. Her beneficiary is her husband, Leonard, born October 6, 1957 age 67, who has always been the IRA beneficiary. What life expectancy factor should be used in the second year of payment for Leonard, assuming he delays life expectancy payments to the year of the deadline?
14.8
Spouse bene uses RECALCULATION, his age in following year 2032 will be age 75. Single life expectancy distribution factor = 14.8. Based on deceased spouse age 72 in 2031. *yes still 72
Doris, an IRA owner, died on April 10, 2024 age 65. She was born September 17, 1959. Her beneficiary is her husband, Leonard, born October 6, 1957 age 67, who has always been the IRA beneficiary. Using the prior-year 12/31 balance of $167,500, what is the life expectancy payment amount for Leonard in year two?
167, 500 / 14.8 =11,317.57
Spouse bene age 75 in 2032 2nd year using RECALCULATION, single life expectancy table distribution factor is 14.8
Doris, an IRA owner, died on April 10, 2024 age 65. She was born September 17, 1959. Her beneficiary is her husband, Leonard, born October 6, 1957 (age 67), who has always been the IRA beneficiary. What life expectancy factor should be used in the third year of payment for Leonard, assuming he delays life expectancy payments to the year of the deadline?
14.1
Spouse bene age 76 in 3rd year using RECALCULATION, single life expectancy table distribution factor is 14.1
Doris, an IRA owner, died on April 10, 2024 age 65. She was born September 17, 1959. Her beneficiary is her husband, Leonard, born October 6, 1957 age 67, who has always been the IRA beneficiary. Using the prior-year 12/31 balance of $155,750, what is the life expectancy payment amount for Leonard in year three?
155,750 / 14.1 = 11,046.10
Spouse bene age 76 in 3rd year using RECALCULATION, single life expectancy table distribution factor is 14.1
Jason, an IRA owner, died on June 4, 2024 age 78. He was born in 1946.His beneficiary is his spouse, Matilda, born May 12, 1951 age 73, who has always been the IRA beneficiary. Assuming Matilda elects life expectancy payments, what distribution period is used in 2025?
15.6
Deceased age 78 past RBD, surviving spouse age 73 year of death. Life expectancy beginning by end of 2025 surviving spouse will be age 74, distribution period on single life expectancy table is 15.6
Jason, an IRA owner, died on June 4, 2024 age 78. He was born in 1946.His beneficiary is his spouse, Matilda, born May 12, 1951 73, who has always been the IRA beneficiary. Assuming Matilda elects life expectancy payments, what distribution period is used in 2026?
14.8
Deceased age 78 past RBD, surviving spouse age 73 year of death. Life expectancy selected, using RECALCULATION, surviving spouse will be age 75 in 2026, distribution period on single life expectancy table is 14.8
Jason, an IRA owner, died on June 4, 2024 78. He was born in 1946. His beneficiary is his spouse, Matilda, born May 12, 1951 age 73, who has always been the IRA beneficiary. Assuming Matilda elects life expectancy payments, what distribution period is used in 2027?
14.1
Deceased age 78 past RBD, surviving spouse age 73 year of death. Life expectancy selected, using RECALCULATION, surviving spouse will be age 76 in 2027, distribution period on single life expectancy table is 14.1
Jason, an IRA owner, died on June 4, 2024 age 78. He was born in 1946.His beneficiary is his spouse, Matilda, born May 12, 1951 age 73, who has always been the IRA beneficiary. Assuming Matilda elects life expectancy payments, what distribution period is used in 2028?
13.3
Deceased age 78 past RBD, surviving spouse age 73 year of death. Life expectancy selected, using RECALCULATION, surviving spouse will be age 77 in 2028, distribution period on single life expectancy table is 13.3
