fb-rmd-0007
{
"account_type": "inherited traditional IRA (non-spouse eligible designated beneficiary taking annual life-expectancy distributions)",
"prior_year_end_balance": 250000,
"beneficiary_age_first_distribution_year": 62,
"years_since_first_distribution_year": 3,
"note": "The beneficiary attained age 62 in the first distribution calendar year (the calendar year following the year of the owner's death). Three calendar years have elapsed since that first distribution year; this item asks for the RMD of the current (fourth) distribution year. The life-expectancy rule applies."
}Compute the beneficiary's required minimum distribution for the current distribution calendar year, in dollars. Respond with the numeric amount only.
11160.71 USD (tolerance ±1)
Produced by compute rmd.single-life-inherited in src/lib/fiduciarybench/keys/index.ts — the stored value is machine-checked against the compute on every build; it cannot drift from its own code.
The RMD equals the prior year-end balance divided by (initial Single Life factor for age 62 minus 3), within $1. Re-entering the table at the current age is the tested failure mode.
“for subsequent calendar years, the designated beneficiary's remaining life expectancy is determined by reducing that initial life expectancy by one for each calendar year that has elapsed after that first calendar year”
“the Single Life Table, sets forth the life expectancy of an individual at each age”
Each quoted passage is exact-matched, after typographic normalization, against the corpus text fetched from the issuing authority (hashes in the corpus manifest). An item whose quote stops matching fails the build.
“for subsequent calendar years, the designated beneficiary's remaining life expectancy is determined by reducing that initial life expectancy by one for each calendar year that has elapsed after that first calendar year” — cfr-1-401a9-5
Under § 1.401(a)(9)-5(d)(3)(iii), a non-spouse designated beneficiary's initial life expectancy is determined using their age in the first distribution year. According to the Single Life Table in § 1.401(a)(9)-9(b), the life expectancy for age 62 is 25.4. For subsequent years, this initial life expectancy is reduced by one for each elapsed calendar year. Since 3 years have elapsed, the applicable denominator is 25.4 - 3 = 22.4. The required minimum distribution is the prior year-end account balance divided by this denominator: $250,000 / 22.4 = $11,160.71. The key's value and derivation are correct.
“for subsequent calendar years, the designated beneficiary's remaining life expectancy is determined by reducing that initial life expectancy by one for each calendar year that has elapsed after that first calendar year” — cfr-1-401a9-5
The beneficiary's initial life expectancy at age 62 under the Single Life Table is 25.4. For the current fourth distribution year, three calendar years have elapsed after the first distribution year, so the initial life expectancy is reduced by three: 25.4 - 3 = 22.4. Dividing the prior-year-end balance by this divisor gives 250000 / 22.4 = 11160.714..., which rounds to 11160.71 USD. This matches the key.
v1; no errata. Demonstrate a key error and the correction is published here, credited — challenge policy.