I tried to bring this up in a different thread but I'm not sure I explained myself clearly.
As a beneficiary I opt to roll a retirement plan into a beneficiary IRA I can take the distributions over my own life based on the Single Lifetime Table using the age of the beneficiary as of his or her birthday in the year of the decedent’s death, reduced by one for each subsequent year as it is longer than the beneficiary’s life expectancy.
My question is must the beneficiary adhere to this schedule to determine the amount each year that must be distributed?
You can not take out less, but can you take out more without being penalized?
If you can take out more than the scheduled RMD if you have not reached age 59 1/2 will you be penalized?
My client will be in a higher tax bracket so they do not want to take the entire amount this year. If we use the tables the RMD will be less than $100, but he doesn't want to be bound by this and when he retires in a few years would like to take out more, but he will only be 55 yrs old. If this is not a possibility and I'm understanding the rules correctly, another option is to take the distributions over 5 years.
As a beneficiary I opt to roll a retirement plan into a beneficiary IRA I can take the distributions over my own life based on the Single Lifetime Table using the age of the beneficiary as of his or her birthday in the year of the decedent’s death, reduced by one for each subsequent year as it is longer than the beneficiary’s life expectancy.
My question is must the beneficiary adhere to this schedule to determine the amount each year that must be distributed?
You can not take out less, but can you take out more without being penalized?
If you can take out more than the scheduled RMD if you have not reached age 59 1/2 will you be penalized?
My client will be in a higher tax bracket so they do not want to take the entire amount this year. If we use the tables the RMD will be less than $100, but he doesn't want to be bound by this and when he retires in a few years would like to take out more, but he will only be 55 yrs old. If this is not a possibility and I'm understanding the rules correctly, another option is to take the distributions over 5 years.
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