For a participant with a spouse more than 10 years younger, the preamble to the 2001 proposed regs says that a participant is "permitted" to use the longer period. The reg itself [1.401(a)(9)-5 Q&A 4(B)] says that a participant will use the longer period.

Does a participant have a choice, as implied by the word "permitted" in the preamble, or must the participant use the longer period, as implied by the reg itself?

It depends on how you look at it.


If the participant uses the 10-year period, this figure will be greater than if he/she had used the longer period, therefore the rules will not be violated (as the minimum amount will have been met).

This is equivalent to saying, the RMD is one figure, but the IRA owner is permitted to take a larger amount that that figure.

Because it does affect mandatory withholding amounts, it can be an important question whether this is a choice or not. If it's a qualified plan and the participant is taking the minimum, there's no mandatory withholding. If a participant wants to take out more than the minimum as determined by the "trophy wife" rule, but doesn't want taxes withheld, it may be to his benefit to elect to use the IMDB tables, if he is allowed to.