fb-rmd-0022
{
"context": "Traditional IRA owner died in November of the distribution calendar year, after his required beginning date. He attained age 80 in June of that year. He owned two traditional IRAs with different beneficiaries: IRA P (beneficiary: his daughter) and IRA Q (beneficiary: his nephew).",
"ira_balances": [
240000,
120000
],
"ira_labels": [
"IRA P",
"IRA Q"
],
"this_ira_index": 0,
"age_at_death_year_end": 80,
"distributed_before_death": 5000,
"note": "Balances are the account balances as of December 31 of the preceding calendar year. Before his death the owner had taken a $5,000 distribution, all of it from IRA Q. No other distributions were made that year."
}Compute the required minimum distribution that IRA P's beneficiary (the daughter) must take from IRA P for the calendar year of the owner's death, in dollars. Respond with the numeric amount only.
8547.85 USD (tolerance ±1)
Produced by compute rmd.year-of-death-shortfall-share 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.
Total year-of-death RMD is the combined prior Dec-31 balances divided by the Uniform Lifetime Table denominator for age 80; the $5,000 already distributed reduces it to the shortfall; IRA P's beneficiary owes the shortfall times IRA P's share of the combined balances, within $1.
“each of the owner's IRAs is subject to a requirement to distribute a proportionate share of the shortfall for the calendar year to a beneficiary of that IRA, with the proportions based on the account balances determined under paragraph (b)(2) of this section”
“This allocation of the shortfall to a particular IRA is made without regard to whether some of the required minimum distribution for the calendar year was already made to the IRA owner from that IRA.”
“the Uniform Lifetime Table, sets forth the applicable denominator that applies for lifetime distributions to an employee in situations in which the employee's surviving spouse is not the sole designated beneficiary”
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.
“each of the owner's IRAs is subject to a requirement to distribute a proportionate share of the shortfall for the calendar year to a beneficiary of that IRA, with the proportions based on the account balances determined under paragraph (b)(2) of this section” — cfr-1-408-8
The total account balance across all IRAs is $360,000 ($240,000 + $120,000). The owner's age in the year of death is 80, which corresponds to an applicable denominator of 20.2 from the Uniform Lifetime Table. The total required minimum distribution for the year is $360,000 / 20.2 = $17,821.78. Since the owner took a $5,000 distribution before death, the remaining shortfall is $17,821.78 - $5,000 = $12,821.78. Under § 1.408-8(e)(4)(i), this shortfall is allocated proportionately based on the account balances, regardless of which IRA the prior distribution came from. IRA P's proportion is $240,000 / $360,000 = 2/3. The required minimum distribution for IRA P's beneficiary is 2/3 of $12,821.78, which equals $8,547.85. The key's calculation is correct.
“each of the owner's IRAs is subject to a requirement to distribute a proportionate share of the shortfall for the calendar year to a beneficiary of that IRA, with the proportions based on the account balances determined under paragraph (b)(2) of this section” — cfr-1-408-8
Total RMD for the year is ($240,000 + $120,000) / 20.2 = $17,821.78. The owner already distributed $5,000, leaving a shortfall of $12,821.78. IRA P's proportionate share is $240,000 / $360,000 = 2/3, so IRA P's beneficiary must take $12,821.78 × 2/3 = $8,547.85.
v1; no errata. Demonstrate a key error and the correction is published here, credited — challenge policy.