![]() The revised tables also affect individuals receiving Substantially Equal Periodic Payments from IRAs or company retirement plans to avoid the ten (10%) percent penalty on distributions received prior to attaining age 59.5.Īs a result of changes made by the Secure Act which is effective for death occurring on or after January 1, 2020, the Single Life Table is used only by Eligible Designated Beneficiaries. The Joint and Last Survivor Table is only used to determine RMDs to plan participants over the age of 72 when a spouse is a sole designated beneficiary and who is over ten (10) years younger than the account owner. ![]() The Uniform Lifetime Table is also used to calculate distributions required for an individual who has inherited a tax deferred retirement account from their spouse and has selected to transfer the account into their own name. The Uniform Lifetime Table is used to determine lifetime RMDs to most plan participants over the age of 72 including when a spousal beneficiary is a sole designated beneficiary but who is not over ten (10) years younger than the account owner or when the spouse is not the sole designated beneficiary. ![]() The text of the final regulations which also contains the new tables can be found at. The old tables calculated life expectancies through age 115. The new tables reflect life expectancies through age 120, with a 120 year old having a 2 year life expectancy. Under the new Uniform Distribution Tables effective beginning 2022, a 72 year old uses a distribution period of 27.4 years. For example, a 72 year in 2021 is considered to have a life expectancy of 25.6 years and thus, must use a distribution period of 25.6 years. The new tables allow distributions to be spread over more years by increasing life expectancies by about one to two years longer than under the existing tables. The Secure Act recently changed the year in which distributions were required to begin from 70 ½ for individuals born before Jto age 72 for individual born after June 30, 1949. RMDs were not required for 2020 due to legislation arising out of the pandemic. The current tables continue to apply to RMDs for 2021. The new tables are to be used for determining RMDs beginning January 1, 2022. On November 12, 2020, the Internal Revenue Service issued Final Regulations providing guidance relating to the life expectancy and distribution tables that are used to calculate required minimum distributions (“RMDs”) from qualified retirement plans, individual retirement accounts and annuities and certain other tax favored employer provided retirement accounts.
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