Planning for the Younger Woman in Your Life

Younger wives"If this is a second marriage, make sure the ex-spouse is no longer the beneficiary on your accounts."

If your wife is about 15 years younger than you are, there are some special steps to take when you calculate your required minimum distributions from your IRA.

Kiplinger's article "Retirement Distributions When Your Spouse Is Much Younger," explains that most people use Life-Expectancy Table III, the Uniform Lifetime Table, in Appendix B of IRS Publication 590 to calculate their required minimum distributions ("RMD"). However, if your sole beneficiary is a spouse who is more than 10 years younger than you, then you should use Life-Expectancy Table II, the Joint Life and Last Survivor Expectancy, to determine your RMD. That table requires you to withdraw less money each year than you would if your spouse were older.

Here's an illustration: if you're 70½ in 2015 and need to take your first RMD, you would divide your account balance as of the end of 2014 by 27.4. So if you had $100,000 in your account, you'd need to withdraw $3,649.64. But if your sole beneficiary is your wife, age 53, you'd divide your account balance by 32.6 and would need to withdraw only $3,067.48.

In Life-Expectancy Table II, look for your age on the left side of the table, then find where that line intersects your spouse's age on the top. Some RMD calculators will let you input your spouse's birthdate to determine your RMD, even if you need to use the different life-expectancy table.

You should also make sure your IRA administrator knows your spouse's birthdate, so they will use the correct table when calculating your RMDs—particularly if you have automatic RMD withdrawals.

It's also a good time to be certain your beneficiary designations are up-to-date. The beneficiary designations on your retirement accounts and life insurance take precedence over the information in your will. Even if you have updated your will, your IRA will go to your designated beneficiary. This will be the case even if you've been divorced, married, or wanted to change your beneficiary for any other reason.

Reference: Kiplinger (December 16, 2015) "Retirement Distributions When Your Spouse Is Much Younger"



Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest

Leave a comment


We have a LOT more where that came from!

We hate spam too. We will never share or sell your information.

Call Now ButtonCall Us Now https://jsfiddle.net/7h5246b8/

Request a free consultation

We hate spam too. We will never share or sell your information.

We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
  • We launched the rollout of our on-demand webinar early so that new clients and our allied professionals can view the important component parts of ‘an estate plan that works’ at their convenience.  That is available on our website.
  • Live video workshops will be produced as quickly as possible and certainly ahead of our previous schedule; we will keep you posted as these events become available. Given the ‘boutique’ nature of the firm, we rarely have more than ten people in our office including team members at any one time. During this period of ‘social distancing,’ we promise to have no more than 8 people at any time.   This allows us to comply with the Governor’s directive to limit in-person gatherings.
  • The best way to communicate with us is still by phone during regular office hours of 8:30 to 5:00, Monday through Friday, or, you can email any of our team members (that is, their first name followed by @zarembalaw.com).  We will respond to these emails as quickly as possible.
  • Please continue to follow the directives of our local, state, and federal agencies. For your health and in consideration of our team who is assisting you, if you’ve scheduled an office appointment or planned to drop off paperwork and are experiencing a fever, dry cough, or shortness of breath, please contact your primary care doctor for guidance and then our office to reschedule.

Thank you, Walt and the Zaremba Team

Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.