Multiple Life Expectancy Tables?
Can you please clarify…are there multiple versions of the Life Expectancy Tables that can be used or is there only one version of each of the three tables (Single Life, Joint Life, and Uniform Life)?
I was under the impression that only one of the three tables mentioned above could be used to properly calculate an RMD; however, I have heard differing opinions where some believe there are multiple versions of the Single Life Expectancy Tables (and presumably others). Is this true?
Permalink Submitted by mk foss on Tue, 2008-11-11 21:21
There is only one version of the three tables. IRS has the ability to change the tables but has not done so.
The single life table is used by beneficiaries for distributions after the retirement account owner’s death.
The uniform table is used by most people to calculate RMDs during life.
The joint table is used for lifetime RMDs if the sole beneficiary is a spouse who is more than 10 years younger than the account owner.
The tables can be used for calculating SEPP payments under 72t of the code but most often they’re used as described above.
Permalink Submitted by Alanna Crawford on Tue, 2008-11-11 21:25
That’s what I thought! Thank you so much!
Permalink Submitted by Alan Spross on Tue, 2008-11-11 21:26
There have been past changes of these tables, but in most years including the present, there is only one version. Those tables are published in Pub 590.
The current tables became mandatory in 2003. They were based on a unisex 2000 table and projected for 2003 mortality changes. Therefore, they lag current mortality changes by 5 years. In the year 2002 only, there was a choice of the new table or the prior 1987 table.
As of 2003, beneficiary RMD divisors should be reconstructed using the new tables. For example, the current single life table should be entered back on the yaer following the owner’s death, and 1.0 deducted from that divisor for each successive year.