New Regulations Help Minimize RMDs

In accordance with Executive Order 13847, the Treasury Department and the IRS have examined the life expectancy and distribution period tables in formerly applicable §1.401(a)(9)-9 and have reviewed currently available mortality data.  As a result of this review, the Treasury Department and the IRS have determined that those tables should be updated to reflect current life expectancies.  Accordingly, these regulations, https://public-inspection.federalregister.gov/2020-24723.pdf, update those tables. 

The life expectancy tables and applicable distribution period tables in these regulations generally reflect longer life expectancies than the tables in formerly applicable §1.401(a)(9)-9. For example, a 72-year-old IRA owner who applied the Uniform Lifetime Table under formerly applicable §1.401(a)(9)-9 to calculate required minimum distributions used a life expectancy of 25.6 years.  Applying the Uniform Lifetime Table set forth in these regulations, a 72-year-old