New 2022 life expectancy tables
Hello –
The Nov. Newsletter contained the most recent article I had seen from Ed Slott on new life expectancy tables for 2022 – AND included the new Uniform Lifetime Table and Single Life Expectancy Table for Inherited IRAs.
1. I don’t see this document available yet on IRS Publication 590-B. Can you confirm where you folks obtained these tables from (per your Nov. article, I was brought to The Federal Register from The Dept. of The Treasury, IRS, dated Nov. 12, 2020).
2. What about the Joint & Last Survivors table for a spouse >10 years younger – it was not included in this article? Also, just confirming this beneficiary is subject to recalculating (like an Acct. Owner w/ the Uniform Lifetime Table who simply goes back to the new Table yearly) as opposed to non-recalculating (like a non-spouse beneficiary)?
3. When would you anticipate custodians updating their systems for these new Tables (I haven’t seen this done yet and have a client who wants his RMD from his Inherited IRAs – will rely on the Tables per your Nov. newsletter)?
Thanks.
Jason
Permalink Submitted by Alan - IRA critic on Mon, 2022-01-03 23:12
The following link includes the joint tables, which may or may not be included in the 2021 Pub 590 B since the new tables are not effective in 2021, even though taxpayers will need them now for 2022. All custodians should have these tables incorporated into their systems by now, since the IRS released the tables and noted the effective date as 1/1/2022 in the release attached below over a year ago.
Federal Register :: Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions
The joint life table is accessed yearly in the same manner as the Uniform table
The single life table for beneficiaries is used to “reset” the divisors for non spouse inherited IRAs by determining what the divisor would have been for the first year of beneficiary RMDs, then subtracting 1 for each year since. After the reset for the 2022 beneficiary RMD, 1.0 annual reductions would then continue into the future. Sole spousal beneficiaries must access the single life table every year, since they are allowed to recalculate each year.
Vanguard has already indicated the 2022 divisors to several non spouse beneficiaries and they appear to have done it correctly for the beneficiaries who did not expect the 2022 divisor to be higher than last year’s divisor reduced by 1.0.