Thus, it would be calculated using the existing life expectancy tables effective in 2020, and not the new life expectancy tables effective in 2021 (even if that 2020 first RMD … On Nov 7, 2019, the IRS proposed updates to the life expectancy tables used to calculate Required Minimum Distributions (RMDs). The proposed tables would apply for distribution calendar years beginning on or after January 1, 2021, with transition relief. If the current tables remained in place it would have been 11.4. Here’s a short summary article on the changes. The rule making process will be completed this year and new, lower RMD percentages will likely take effect for 2021. My conclusion is that the changes don’t really mean much to you. == RMD … This post describes those changes and what I think that means for us retirees. The tables reflect the general increase in life expectancy. Come 2022 if you will be 90, your divisor under the new tables will be 12.2. Again, this is for 2022 RMD year. The new life expectancy tables will result in the first RMD for … The new rules must be understood by those whose provide advice regarding rmds … So for an individual who attains age 70-1/2 during 2020, the new tables would not apply to the 2020 RMD due April 1, 2021, but would apply to the 2021 RMD due Dec. 31, 2021. Irs proposes new rmd tables effective january 1st 2021 on thursday november 7 the service released 122 pages describing proposed regulations which will modify required minimum distributions rmds. The new changes still need to go through a formal approval process and are not scheduled to be implemented until the 2021 tax year. There is a link within the link I posted above that includes all the tables that will be published, so you can see what your divisors will be for 2022 and beyond now. The IRS Uniform Life Expectancy Table is what the TSP uses to ... in a RMD of $11,718.75. Input invited on periodic updates. An initial RMD is generally due by the April 1 after an individual reaches age 70-1/2, but subsequent RMDs are due by each Dec. 31. IR-2020-162, July 17, 2020 WASHINGTON — The Internal Revenue Service today reminds seniors and retirees that they are not required to take money out of their … The IRS published proposed changes to RMD percentages in November. Notably, while such individuals may, in fact, wait until (as late as April 1,) 2021 to take that first RMD, that RMD is for2020. The IRS proposed changes to the life expectancy tables used by retirement account owners to calculate their annual RMD. As such, the revised tables work to extend the time period in which the amounts in the applicable plans can continue to grow on a tax deferred basis. The IRS reports that 80% of retirement account owners take more than their RMD annually.