IRS Updates Life Expectancy Tables for Determining RMDs
November 5, 2020 – The IRS has issued a pre-publication version of final regulations containing guidance and life expectancy tables to be used in the calculation of required minimum distributions (RMDs) from IRAs and other tax-qualified retirement savings arrangements, such as 401(k) plans. Those affected will include IRA owners, plan participants, beneficiaries, and employer-sponsored retirement plan administrators.
These final regulations will take effect on the date of their publication in the Federal Register, and the life expectancy tables they contain are to be used for calculations for distribution calendar years beginning January 1, 2022. The purpose for providing these updated life expectancy and distribution tables is to ensure that future required payments from retirement savings arrangements better reflect actual life expectancies of those who receive such payments.
This guidance is under review and additional information will be provided as warranted.