You may be eligible to defer your RMD if you are a participant under a 403(b) arrangement or an employer sponsored plan and are still employed by the employer through which your contributions were made.
If eligible, you can delay your distribution until the later of:
- April 1 following the year you reach age 70½, or
- April 1 following the year you retire (This second option is not available to IRA holders or to business owners who own 5%
or more of the business sponsoring the plan.)
If your spouse is more than 10 years younger than you and you name him or her as your sole beneficiary, you can reduce the amount of your RMD. Use the Joint Life and Last Survivor Expectancy Table (Table II) that can be found in IRS Publication 590, or call Pioneer for further assistance.
Make sure you review your beneficiary designations on a regular basis. If your circumstances change you can update your beneficiary designation to reflect those changes. Talk to your investment professional or call Pioneer for more information.
Setting up separate accounts can help minimize taxes and maximize the deferral on inherited IRAs. For example, if you named two beneficiaries on your account - your son, age 49 and grandson, age 10 - each could use his own life expectancy if the account is split by the deadline. For the grandson, this means potentially stretching his life expectancy payouts for nearly 73 years, versus taking them out over your son's life expectancy of only 35 years.