What are the required minimum distributions from a 403(b) annuity following the death of the annuity owner?
November 16, 1999 Question: Scenario: 403(b) annuity owner, age 75, is taking required minimum distributions based on the joint life expectancy recalculation with his spouse as the beneficiary (age 70). The participant dies. The custodian gives the spouse beneficiary two options: (1)Lump sum distribution and rollover to an IRA, or (2) annuitize the contract. The surviving spouse elects to annuitize the contract for a period certain that does not exceed her life expectancy (16 years), and names her 2 adult children as beneficiaries. The surviving spouse dies 5 years later. The TSA custodian gives the beneficiaries the option to continue annuity payments for the remaining 11 years. Has the TSA custodian violated the “irrevocable” RMD election by extending the TSA payments beyond both the participant and his spouse’s life expectancies — in effect changing the method of RMD calculation from recalculation to non-recalculation? Answer: I understand from your question that the participant ha
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- Have the mortality tables for calculating lifetime and after death required minimum distributions changed under the 2002 final regulations?
- What are the required minimum distributions from a 403(b) annuity following the death of the annuity owner?
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