RMD for 2021

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  • #7850
    wj
    Participant

    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. Is that correct? has a new table been issued?

    Thanks, WJ

    #7851
    Alan S.
    Participant

    The IRS has not formally accepted the proposal as yet. IRA and qualified plan administrators need a couple months lead time to program their systems each year, so if the IRS has still not accepted the proposal by the end of October, they likely will not apply at least for 2021.

    The proposed tables are here: https://s3.amazonaws.com/public-inspection.federalregister.gov/2019-24065.pdf

    #7852
    wj
    Participant

    Thanks Alan They probably are not in any hurry to reduce tax income, but I can hope!

    WJ

    #7987
    Alan S.
    Participant

    Another month has passed, and still no word from the IRS.

    #7999
    wj
    Participant

    Still hoping. 17 days left in October!

    WJ

    #8116
    Alan S.
    Participant

    The final Regs for the proposed new RMD tables is due to be published on 11/12/2020. Unfortunately, the effective dates for the new tables has been pushed back to 1/1/2022, apparently due to complications of the Secure Act. Too much at once, aggravated by Covid.

    https://www.federalregister.gov/public-inspection/2020-24723/updated-life-expectancy-and-distribution-period-tables-used-for-purposes-of-determining-minimum

    #8117
    wj
    Participant

    Thanks for info. Delay not great news for this 88 yearold, but better than nothing.
    I expect the final will not have changed from the proposed, but hope you can provide link when published.

    WJ

    #8123
    Alan S.
    Participant

    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.

    Come 2022 if you will be 90, your divisor under the new tables will be 12.2. If the current tables remained in place it would have been 11.4. Again, this is for 2022 RMD year.

    • This reply was modified 10 months, 2 weeks ago by Alan S..
    #8125
    wj
    Participant

    Thanks Alan

    WJ

    #10694
    wj
    Participant

    Did this change to the RMD tables finally pass?

    #10695
    wj
    Participant

    And does it apply in 2021?

    #10816
    Alan S.
    Participant

    The new tables are not effective until 2022, therefore your 2021 RMD is calculated using the current tables. This is official per the above link published 11/6/2020.

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