Common use of Distribution Calculations In General Clause in Contracts

Distribution Calculations In General. Most beneficiaries will use a single life expectancy method to satisfy these RMDs unless they elect the five-year rule. The five-year rule requires your beneficiary to completely withdraw your XXX assets by the end of the fifth year following your death year. The single life expectancy method requires a calculation each year which takes the prior year-end balance and divides it by that current year's single life expectancy divisor. The single life expectancy divisor, using the IRS's single life table, will be determined by using the age on December 31 in the year following death of the oldest designated beneficiary, unless multiple beneficiaries exist and separate accounting applies. This initially determined divisor is reduced by one for each subsequent year's calculation. This general rule for determining life expectancy applies if your XXX has at least one designated beneficiary, whether your death occurs before or on or after your RBD. However, if you die on or after your RBD, your remaining life expectancy, determined in your death year and reduced by one in each subsequent year, may be used to determine the distribution each year. This is true if your remaining life expectancy is longer than the beneficiary's life expectancy that same year, determined in the year after your death and reduced by one in each subsequent year, or if your XXX is treated as having no designated beneficiary.

Distribution Calculations In General. Most beneficiaries will use a single life expectancy method to satisfy these RMDs unless they elect the five-year rule. The five-year rule requires your beneficiary to completely withdraw your XXX SIMPLE IRA assets by the end of the fifth year following your death year. The single life expectancy method requires a calculation each year which takes the prior year-end balance and divides it by that current year's single life expectancy divisor. The single life expectancy divisor, using the IRS's single life table, will be determined by using the age on December 31 in the year following death of the oldest designated beneficiary, unless multiple beneficiaries exist and separate accounting applies. This initially determined divisor is reduced by one for each subsequent year's calculation. This general rule for determining life expectancy applies applies, if your XXX SIMPLE IRA has at least one designated beneficiary, whether your death occurs before or on or after your RBD. However, if you die on or after your RBD, your remaining life expectancy, determined in your death year and reduced by one in each subsequent year, may be used to determine the distribution each year. This is true if your remaining life expectancy is longer than the beneficiary's life expectancy that same year, determined in the year after your death and reduced by one in each subsequent year, or if your XXX SIMPLE IRA is treated as having no designated beneficiary.

Distribution Calculations In General. Most beneficiaries will use a single life expectancy method to satisfy these RMDs unless they elect the five-year rule. The five-year rule requires your beneficiary to completely withdraw your XXX IRA assets by the end of the fifth year following your death year. The single life expectancy method requires a calculation each year which takes the prior year-end balance and divides it by that current year's single life expectancy divisor. The single life expectancy divisor, using the IRS's single life table, will be determined by using the age on December 31 in the year following death of the oldest designated beneficiary, unless multiple beneficiaries exist and separate accounting applies. This initially determined divisor is reduced by one for each subsequent year's calculation. This general rule for determining life expectancy applies if your XXX IRA has at least one designated beneficiary, whether your death occurs before or on or after your RBD. However, if you die on or after your RBD, your remaining life expectancy, determined in your death year and reduced by one in each subsequent year, may be used to determine the distribution each year. This is true if your remaining life expectancy is longer than the beneficiary's life expectancy that same year, determined in the year after your death and reduced by one in each subsequent year, or if your XXX IRA is treated as having no designated beneficiary.