IRS updates life expectancy tables for RMDs

Tax Hot Topics newsletter The IRS has issued final regulations (TD 9930) updating the life expectancy and distribution period tables used for determining required minimum distributions (RMDs) from qualified retirement plans, individual retirement accounts (IRAs), annuities and other tax-favored employer-provided retirement arrangements.

The guidance finalizes proposed regulations issued in November 2019 with some modifications in response to comments from taxpayers. Changes including using mortality rates derived from the 2012 Individual Annuity Mortality Basic Table and delaying the effective date by one year. The IRS also indicated it will update the regulations under Section 401 to reflect changes made by the Setting Every Community Up for Retirement Enhancement Act (SECURE) Act, which was enacted shortly after the proposed regulations were issued.

The final regulations apply to distribution calendar years beginning on or after Jan. 1, 2022.

Jeff Martin
Partner, Washington National Tax Office
T +1 202 521 1526

Keith Mong
Managing Director
Washington National Tax Office
T +1 202 521 1554

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