New RMD tables ?
I hear on news that our life expectancy is reduced .. probably due to pandemic. When I look for new IRS tables, I find an article from 2020 that has the opposite. It says our RMDs will be lessened in 2022 because of an increase in our life expectancies. Also seems the CDC may be the ones who determine this. Any idea when or where I could look for the increased RMD tables or when they would be adopted by the IRS .. so we can “plan” accordingly ?
In a past Q, you advised the new IRMAA would likely be out around early Nov. I see some medicare supplement plans are showing a preliminary amount for the first tier of 182k for MFJ. IF that is true, its a nice jump from 176k .. TBD.
Permalink Submitted by Alan - IRA critic on Sun, 2021-10-10 14:55
The new RMD tables were developed in 2019 and reflected mortality improvements since 2003, therefore the pandemic’s effect on mortality was not considered. Therefore, the new tables may well understate the actual current mortality situation. Historically, new tables are adopted every 15-20 years and therefore reflect mortality changes over long periods of time. Originally, the new tables were intended to be effective in 2021, but were held back an additional year by the IRS due to the collective effects of the pandemic, not necessarily the decline in mortality. There is no current discussion regarding the next tables or an accelerated determination date due to the pandemic, so you would have to make your own estimate of how long the newly introduced tables for 2022 will run prior to being superceded.
IRMAA MAGI tiers are adjusted annually according to formula using CPI-U (SS uses CPI-W). Since the two CPI versions are similar, it seems that 182k (MFJ) might be a conservative estimate. The various IRMAA tier MAGI amounts spin off from the basic figure. The official announcement is expected between early and mid November and will apply to 2020 tax return figures.
Permalink Submitted by Ron Corcoran on Sun, 2021-10-10 16:23
Awesome, thank you very much.
Permalink Submitted by Bruce Steiner on Sun, 2021-10-10 14:59
Here are the regulations containing the new tables, effective beginning in 2022: https://public-inspection.federalregister.gov/2020-24723.pdf .
Most life expectancies are increased (resulting in smaller required distributions), but life expectancies at some older ages are reduced (resulting in higher required distributions).
The updated tables were developed before the pandemic. The tables are updated from time to time, though not very often.