The Internal Revenue Service (IRS) and the Department of Treasury have proposed updates to the life expectancy and distribution period tables that are used to calculate required minimum distributions. Both agencies reviewed currently available mortality data, and, as a result, determined that the tables should be updated to reflect current longer life expectancies. The updated tables would apply for distribution calendar years beginning on or after January 1, 2021. The effect of the proposed changes would reduce required minimum distributions and allow participants to retain larger amounts in their plans to account for the longer life expectancies.
Comments must be received by January 7, 2010, and public hearing on the proposed regulations has been scheduled for January 23, 2020.