Iowa Administrative Code
Agency 495 - Iowa Public Employees' Retirement System
Chapter 14 - Death Benefits and Beneficiaries
Rule 495-14.15 - Required Minimum Distribution (RMD) Basic Calculation
Universal Citation: IA Admin Code 495-14.15
Current through Register Vol. 47, No. 6, September 18, 2024
(1) The RMD for a member who retired under an option with a lump sum death benefit and died after the member's required beginning date (RBD) is calculated as follows:
a. Step 1. Determine the number of payments
remaining for the calendar year in which the member died. The current month's
payment is not used in this calculation.
b. Step 2. Multiply the number of remaining
payments determined in Step 1 by the gross amount of the member's last monthly
payment to get the RMD amount. If the lump sum death benefit is less than the
RMD, then the RMD is the lump sum death benefit amount.
c. Step 3. Determine the total non-RMD amount
by subtracting the RMD as determined in Step 2 from the lump sum death
benefit.
d. The eligible rollover
amount is the total non-RMD amount as determined in Step 3.
(2) In order to allocate nontaxable amounts between RMD and non-RMD, the calculation is performed as follows:
a. Nontaxable amounts are allocated
first to the RMD portion of the lump sum death benefit.
b. If the nontaxable amounts are greater than
the RMD amount, the remaining nontaxable amounts are allocated to the non-RMD
portion of the lump sum amount.
c.
If the nontaxable amounts are less than the RMD amount, the remaining portion
of the RMD amount is composed of taxable amounts.
Disclaimer: These regulations may not be the most recent version. Iowa may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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