In this NJ Money Help article, a retiree asked whether the Required Minimum Distributions (RMDs) from a workplace retirement account would be based on their age or the age of their spouse, who was the account’s sole beneficiary.

In his response, Howard Hook, CFP®, CPA, CAP®, explained that the age at which RMDs must begin is not determined by the beneficiary’s age. Instead, he said the timing depends on the account owner’s age and whether they are still working for the company sponsoring the retirement plan.

Hook noted that individuals who have reached age 72 generally must begin taking RMDs unless they are still employed by the company and do not own more than 5% of it. In that case, distributions may be deferred until retirement.

While a spouse’s age does not determine when RMDs begin, Hook explained that it can affect how the distribution amount is calculated. Because the reader’s wife was only one year older, the Uniform Lifetime Table would be used. He noted that the Joint Life Expectancy Table generally applies when a spouse is more than 10 years younger than the account owner.

Hook also discussed inherited IRAs, explaining that a surviving spouse may treat an inherited IRA as their own and use the applicable life expectancy tables when calculating distributions.

To read Howard’s full response, visit the original article on NJMoneyHelp.com: Will Retirement Distributions Be Based on My Age or My Wife’s?

Putting It Into Perspective

Required Minimum Distribution rules can be confusing, particularly when spouses, beneficiaries, and multiple retirement accounts are involved. Understanding when distributions must begin and how they are calculated can help retirees avoid mistakes and make more informed decisions about retirement income.

To learn more, explore our Retirement Planning Articles and how our comprehensive financial planning services help retirees and pre-retirees achieve and maintain financial independence.