TABLE ONE 2002 IRA & QUALIFIED PLAN MINIMUM REQUIRED DISTRIBUTION (MRD) RULES
Basic Rule: MRD is calculated by dividing the Account Balance by the Distribution Period. IRA Owner is defined as an “Employee” in Rules for convenience
PLAN OPTIONS: It is important to realize that the rules below are subject to the possibility that the Plan may create a default provision as to a choice of five year distribution vs. life expectancy for designated beneficiaries that will control over the default rules shown below. ALWAYS CHECK THE PLAN THAT GOVERNS YOUR SITUATION TO SEE WHAT CHOICES ARE PERMITTED.
TABLES: There are three new tables: Single, Uniform Lifetime, and Joint/Survivor. Uniform will be approximately Single+10, and J/S will be approximately Uniform + the difference between the default 10 and the real difference. For example, John is 70. His Single expectancy is 17.0; John & Spouse Mary, if she is 60 or older will be 27.4…(17 + 10). John and Mary, age 55, will be 31.1, or 17 +15, allowing for allocation of when distributions actually begin. This is just a rough sample to illustrate the purpose of the three tables.
LIFETIME DISTRIBUTIONS
Employee/ IRA owner, receiving distributions during his life.	Uniform Distribution period will apply for most people with the same age. Use the UNIFORM PERIOD TABLE. It is equivalent to the Single Life figure PLUS Last Survivor Life Expectancy, expressed as a default of Employee and Survivor that is ten years younger than Employee. So, e.g. age 70 period will be the same for all age 70 clients. It makes no difference if the survivor spouse is 69 or 60 for purposes of John’s lifetime distributions. Note: this is for both situations of Employee plus spouse 10 years or older, and spouse plus one or more additional beneficiaries.
Employee & Spouse l0 years or less younger		Uniform Table
Employee & Spouse more than 10 years younger		Joint and Survivor Table
DISTRIBUTIONS AFTER DEATH Uniform Table for current year of Employee’s death	BEFORE REQUIRED MINIMUM DISTRIBUTIONS BEGIN		AFTER REQUIRED MINIMUM DISTRIBUTIONS BEGIN
Designated Beneficiary	Life Expectancy of Designated Beneficiary		Designated Beneficiary – Longer of DB remaining life expectancy or employee life.
Non Designated Beneficiary (heir)	Five Years		No designated Beneficiary – Employee’s life expectancy in year of death, less 1- Uniform Table
Spouse	Wait until decedent would have been 70-1/2 to begin MDR’s, then on her own expectancy rate on Single Table.		Spouse DB – Spouse’s single life expectancy effective on her birthday. Spouse dies – Spouse’s remaining life expectancy less 1
No Provision in Plan or 5 year election made	Designated Beneficiary – default is lifetime Non Designated Beneficiary – default 5 years
Questions? Click here for an Advisor. Or call toll-free to: 1-800-589-1802 ext24 (c) May 2002 All Rights Retained Sara Vannucci, JD TheUSBroker