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Greetings, Seith, and welcome. You wrote:

<<I am very interested in the hybrid method for determining MRD discussed in the 8/7/2000 article. I will be 70 in Nov. and am in the process of thinking through the options. Mrs. Seith is 74 and my primary beneficiary. We have five sons who are listed as secondary beneficiaries.

Could you elaborate on how the hybrid method works if I die first. (Her family is very long-lived and I have just about given up hope of ever having a young bride). Does the amount that she takes over go from recalculation to term certain? Does the unique table spell out the MRD factors and years for her to make withdrawals?

Also, it isn't clear how it would work if she predeceases me. In this case why would there be time left in her term certain period? Wouldn't my recalculation method be operative if this happened?>>

In the hybrid method wherein you use recalculation for yourself and term certain for your spousal beneficiary, when you die first your spouse may continue distributions under the pattern established at the beginning of MRD, but does not have to do that. In fact, it's usually better for that spouse to take over the IRA as his/her own and name a new beneficiary to enable a stretch IRA for the children.

If your spouse predeceases you, you must continue to use the MRD factors as established by the hybrid method table. That table incorporates the original life expectancy of the deceased spouse, and simply reduces it by 1 for every year MRD have been in effect. Thus, when you die the kids may use whatever is left of the original life expectancy of your spouse when MRD began.

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