How to Calculate RMDs for a Spouse who Inherits

Required minimum distributions (RMDs) for spouses took a slightly new turn under the SECURE Act of 2019. The Required Beginning Date (RBD) was changed to April 1 of the year after the participant would have reached age 72. The RBD age for the past 44 years was 70-1/2.
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If the participant died before his or her RBD...

the ProTracker Advantage® RMD Calculator uses the spouse's attained age for the year of distribution found in the Single Life Table. The calculation is repeated in future years using the spouse's attained age for following year. This is known as the Recalculate Method. The Fixed Term (N-1) Method does not apply to a spouse when the participant died before his or her RBD.
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If the participant died after his or her RBD, there are two options. The most favorable option may be selected by the inheritor.
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The RMD for the year of death must be taken by the decedent's estate using the Uniform Life Table. Thereafter, the factor used is the larger of:

• Option 1 (generally best for spouses younger than the participant):The surviving spouse's life expectancy based on the Single Life Expectancy Table for each calendar year. Repeat in future years using the spouse's attained age in the Single Life Table. This is the Recalculate Method.

OR

• Option 2 (generally best for spouses older than the participant):
  The life expectancy of the decedent based on the Single Life Expectancy Table using the age of the decedent as of his or her birthday in the year of death, with subsequent factors each year being reduced by one. This is the Fixed-Term (N-1) Method.

The ProTracker Advantage RMD Calculator takes all these factors into consideration when performing RMD calculations. The method used and the table used are reported on the RMD Calculation Report.

Find more information about calculating RMDs and documenting them here.