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March 7, 2009

IRA Beneficiary Options Quick Reference

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Traditional IRA Beneficiary Options Quick Reference

HIGH LEVEL SUMMARY

Beneficiary
IRA owner Dies Before the RBD
IRA owner Dies on or After the RBD
Spouse as sole primary beneficiary
  • Treat as own
  • Life-expectancy Payments (Recalculation) –beginning the  later of (a) December 31 of the year following year of death or (b) December 31 of IRA holder’s 70½ year  or
  • Five Year Option
  • Treat as own , or
  • Life expectancy Payments  taken over the Longer of (a) recalculated life expectancy of spouse or (b)  nonrecalculated remaining life expectancy of decedent
Non-spouse beneficiary
  • Life-expectancy Payments(Non-Recalculation): or
  • The Five Year Option:
  • Life expectancy Payments  taken over the Longer of (a) nonrecalculated life expectancy of beneficiary or (b)  nonrecalculated remaining life expectancy of decedent
Non-person
  • The Five Year Option
  • Life expectancy Payments over the remaining life expectancy of the decedent – nonrecalculated
Qualified trust
  • Life-expectancy Payments:
  • The Five Year Option
  • Life-expectancy Payments:

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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