Definition
Method of determining life expectancy used to calculate post-death distributions, where once the life expectancy is determined in the determination year, 1 is subtracted from it for each subsequent year.
Method used by non-spouse beneficiaries to determine their life-expectancy to calculate post-death RMDs. For instance , if a 58 year old beneficiary has a life expectancy of 27.0 years, the life expectancy for each subsequent year is determined by subtracting 1 for each that that passes.
This is referred to as non-recalculation
Referring Cite
IRC§401(a)(9), Treas. Reg. 1.401(a)(9)
Additional Helpful Information
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- If the participant dies before the required beginning date (RBD), the determination year is the year following the year the participant dies
- If the participant dies on or after the RBD, the determination year is either:
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- The year the participant dies, if the participant has a longer life expectancy than the beneficiary
- The year following the year the participant dies, if the beneficiary has a longer life expectancy than the participant
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