(In this case, you don't have to begin taking distributions the year after death.) If the IRA owner or plan participant died after beginning to take required minimum distributions, you may be able to spread distributions over the owner's or participant's remaining life expectancy
(calculated in the year of death) if that period is longer than your own life expectancy.
However, thereafter, the minimum required distribution will be based upon the surviving spouse's remaining life expectancy
, as recalculated for each year of the surviving spouse's over life, or the account holder's remaining life expectancy
had he or she survived, if longer.
When comparing remaining life expectancy
at 65 years of age, the gap between males and females rose from 2.2 years in 1950 to 4.2 years in 1980.
"Consumers tend to dislike risk," he says, "but patients facing a fatal disease with relatively short remaining life expectancy
may have less to lose.
The September 2011 MetLife Study of "Women, Retirement, and the Extra-Long Life: Implications for Planning" reports that for women who have survived to age 60, the average remaining life expectancy
is 23.8 years, to about age 84.
The IRS noted that the annual payments under the Contracts with Option X would automatically increase by a fixed percentage over the prior year's payments, rather than increase or decrease based on the account balance and the remaining life expectancy
from the chosen table.
Smoking-attributable YPLL were estimated by multiplying sex- and age-specific SAM by remaining life expectancy
at the time of death.
At 6% growth rate and a 25% tax rate, Marion would be able to defer more than $37,000 in taxes over her remaining life expectancy
of 24.6 years (see chart) by selecting the minimum distribution method.
401(a)(9) required distributions from Y based on her remaining life expectancy
. Additionally, if X's sponsor does transfer the X balance, less the calendar-year 2006 and 2007 RMDs as represented, Y will be payable to A, E's named (designated) beneficiary.
These required minimum distributions will be based on your spouse's remaining life expectancy
, not yours.
With a remaining life expectancy
of 17 years and a two percent inflation rate, this retiree would receive $440,000 by age 82; to limit the expected benefit to the $82,066 paid in lifetime taxes, the Kerry plan would require cutting it by about 80%, thus lowering the annual benefit to $4,100.