The life expectancy and distribution period tables in the proposed regulations have been developed based on mortality rates for 2021. This is the most-commonly used table. Is that correct? The IRS published proposed changes to RMD percentages in November. For 2021, taking into account the life expectancy tables under the proposed regulations and applying the transition rule, the applicable distribution period would be 12.0 years (the 14.0 year life expectancy for a 76 year old under the Single Life Table in the proposed regulations, reduced by 2 years). * Adjust if you have assets that were in the process of being recharacterized, transferred or rolled over on December 31. Uniform Lifetime Table - use this if your spouse is not your sole beneficiary or your spouse is not more than 10 years younger. This post describes those changes and what I think that means for us retirees. On December 31 of last year, Jessica’s ending account balance was $262,000. Under the new table, her life expectancy factor is 27.4, and her RMD is $10,949 ($300,000/27.4). The life expectancy tables and Uniform Lifetime Table set forth in this section apply for distribution calendar years beginning on or after January 1, 2022. Somewhere I read that the IRS was going to change the Uniform Lifetime Table such that RMD's for 2021 and beyond would be a bit lower than required by current table. Sofia’s IRA was worth $300,000 as of December 31, 2021. The life expectancy tables and Uniform Lifetime Table under these proposed regulations would apply for distribution calendar years beginning on or after January 1, 2021. == RMD Factor … Under the current Uniform Lifetime Table, which still applies through 2020, the divisor for age 75 is 22.9, so his 2020 RMD is $87,336. Reg. Uniform Lifetime Table. Under the proposed table, the spouse would use a life expectancy of 14.8 years. has a new table been issued? The life expectancy tables and applicable distribution period tables in the regulations generally reflect longer life expectancies than the formerly applicable tables. RMD = Account Balance ÷ Life Expectancy Factor (from the table below) Example: Jessica is an IRA owner, and her husband, Jeff, is the sole beneficiary on her account. Thanks, WJ The life expectancy tables and the Uniform Lifetime Table under the proposed regulations were developed based on mortality rates for 2021, the IRS notes, and would apply for distribution calendar years beginning on or after Jan. 1, 2021. Under the old Uniform Lifetime Table, Sofia’s life expectancy factor would have been 25.6, and her 2022 RMD would have been $11,719 ($300,000/25.6). §1.401(a)(9)-5, Q&A-1(b)), beginning on or after Jan. 1, 2022. IRS UNIFORM LIFETIME TABLE PAGE 2 OF 2 Source: Internal Revenue Service, Publication 590-B, Table III, Uniform Lifetime. This post has been corrected to note that the new life expectancy tables are effective not for 2021 … Here’s a short summary article on the changes. Using the Uniform Lifetime Table set forth in the proposed regulations, this IRA owner would use a life expectancy of 29.1 years to calculate RMDs. Proposed Date of Applicability . 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. Jessica turns 72 this year, and Jeff turns 60. For example, a 72-year-old IRA owner who applied the former Uniform Lifetime Table … The final regulations, life expectancy tables and Uniform Lifetime Table will become effective on the date they are published in the Federal Register (scheduled to take place on Nov. 12, 2020) and will apply to distribution calendar years (as defined in Treas.