This information is not part of the official Federal Register document. In the context of a Presidentially-declared Major Disaster, Rev. 2002-62 and provides a 5 percent floor on the maximum interest rates that may be used to calculate annuity payments under the fixed amortization and annuitization methods. 9930, 85 FR 72427 (Nov. 12, 2020). Consistent with the policy of section 401(a)(9) to limit deferral of retirement income, 1.401(a)(9)-6, Q&A-1(a) provides that, except as otherwise provided in 1.401(a)(9)-6, payments from a defined benefit plan must be non-increasing in order to satisfy section 401(a)(9). An additional requirement under 42 relating to an Agencys inspection of low-income units as provided in 1.42-5(c)(2)(iii)(C)(2) of the Income Tax Regulations is the 15-day reasonable notice requirement described in 1.42-5(c)(2)(iii)(C)(3). Relevant information about this document from Regulations.gov provides additional context. The life expectancy tables that can be used to determine distribution periods under the required minimum distribution and fixed amortization methods are: (1) the Uniform Lifetime Table in Appendix A of this notice; (2) the Single Life Table in 1.401(a)(9)-9(b); or (3) the Joint and Last Survivor Table in 1.401(a)(9)-9(d) (which can be used even if the designated beneficiary is not the spouse). Although data are not available to estimate the number of small entitles affected, the rule may affect a substantial number. Please note that this is a partial table. This repetition of headings to form internal navigation links These regulations do not Start Printed Page 72476include revisions to these examples to reflect the life expectancy tables in these regulations. documents in the last year, by the Rural Utilities Service Provide Americas taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all. Effective in 2022, the IRS initiated new life expectancy . Section 401(a)(9)(C) defines the term required beginning date for employees (other than 5-percent owners and IRA owners) as April 1 of the calendar year following the later of the calendar year in which the employee attains age 72 or the calendar year in which the employee retires. Removing the language A-3 of in 1.401(a)(9)-9 wherever it appears and adding 1.401(a)(9)-9(d) in its place. Under the pre-2022 RMD table, Eve's life expectancy factor would have been 22.9, and her 2022 RMD would have been $13,100 ($300,000/22.9). See Treas. Section 72(t)(2) sets forth exceptions to this 10% additional tax. If an employee died before January 1, 2022, and, under the rules of 1.401(a)(9)-5, the distribution period that applies for a calendar year following the calendar year of the employee's death is equal to a single life expectancy calculated as of the calendar year of the employee's death (or, if applicable, the following calendar year), reduced by 1 for each subsequent year, then that life expectancy is reset as provided in paragraph (f)(2)(ii) of this section. Proc. Source: IRS Publication 590-B, Appendix B for 2022 and thereafter. 2018-58, 2018-50 I.R.B. For purposes of 1.42-5(c)(2)(iii)(C)(3), between April 1, 2020, and the end of 2022, when the Agency gives an Owner reasonable notice that it will review low-income certifications of not-yet-identified low-income units, it may treat reasonable notice as being up to 30 days. Because of high State-to-State and intra-State variability of COVID-19 transmission, an Agency, in consultation with public health experts, may extend the waiver in the preceding sentence if the level of transmission makes such an extension appropriate. The life expectancy tables in formerly applicable 1.401(a)(9)-9 are used in several numerical examples in 1.401(a)(9)-6, Q&A-14(f) that illustrate the availability of the exception described in 1.401(a)(9)-6, Q&A-14(c) (regarding certain increasing payments under insurance company annuity contracts). These regulations do not include Uniform Lifetime Table entries for ages 70 and 71 because section 114 of the SECURE Act changed the minimum age for receiving required minimum distributions from age 701/2 to age 72. They are referenced in proposed regulations issued on May 5, 2022. These regulations affect participants, beneficiaries, and plan administrators of these qualified retirement plans and other tax-favored employer-provided retirement arrangements, as well as owners, beneficiaries, trustees and custodians of individual retirement accounts and annuities. Pursuant to 1.401(a)(9)-5, Q&A-4(a), for required minimum distributions during the employee's lifetime (including the year in which the employee dies), the applicable distribution period for an employee is the distribution period for the employee's age under the Uniform Lifetime Table (which is equal to the joint and last survivor life expectancy for the employee and a hypothetical beneficiary 10 years younger). As described in the Effective/Applicability Date section of this preamble, these regulations will apply to distribution calendar years beginning on or after January 1, 2022. The Joint and Last Survivor Table -Effective 01/01/2022. Paragraph (f) of this section provides applicability date rules. In addition, section 2.01(c) of Rev. 2014-49 also provides emergency housing relief for individuals who are displaced by a Major Disaster from their principal residences in certain Major Disaster Areas. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. An executive order in 2018 required the Treasury Department to determine if the tables should be revised. Example: Brian is a retired 401 (k) participant who turned 72 on March 31. Rul. Rul. offers a preview of documents scheduled to appear in the next day's Although the rule may affect a substantial number of small entities, the economic impact of these regulations is not likely to be significant. Under the new uniform life table, for example, a 75-year old would use 24.6 as their factor. For Slott Report articles:Copyright [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. 2020-24723 Filed 11-5-20; 4:15 pm], updated on 4:15 PM on Tuesday, February 28, 2023, updated on 8:45 AM on Tuesday, February 28, 2023, 104 documents IRA Required Minimum Distribution (RMD) Table for 2023. Proc. Notice 2020-23, Notice 2020-53, Notice 2021-12, Notice 2021-17, Rev. 710, provides that the life expectancy tables set forth in 1.401(a)(9) may be used for purposes of determining payments that satisfy the exception under section 72(t)(2)(A)(iv). FICAFederal Insurance Contributions Act. IRS Joint Life and Last Survivor Expectancy Table Divisors for calculating your RMDs If your spouse is more than 10 years younger than you and is your sole primary beneficiary, use . on Under section 72(t)(2)(A)(iv), one of the exceptions to the 10% additional tax is for distributions that are part of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and designated beneficiary. The principal authors of these regulations are Arslan Malik and Linda S.F. (b) Designated beneficiary under the Joint and Last Survivor Table. Notice 2020-23, 2020-18 I.R.B. The most commonly used tables are the Uniform Lifetime and the Single Life Expectancy Tables. In this case, the previously published ruling is first modified and then, as modified, is superseded. The following abbreviations in current use and formerly used will appear in material published in the Bulletin. Section 401(a)(9)(A) provides rules for distributions during the life of the employee. The most commonly used tables are the Uniform Lifetime and the Single Life Expectancy Tables. method with a single life expectancy and an annual payout. For purposes of 1.42-5, an Agency is not required to conduct compliance-monitoring physical inspections in the period beginning on April 1, 2020, and ending on June 30, 2022. If the Joint and Last Survivor Table is used, the age of the designated beneficiary on the designated beneficiarys birthday in the distribution year is also used. All published rulings apply retroactively unless otherwise indicated. Example: Eve turns 75 in 2022 and opts to take her first RMD in 2022. 2022 Single Life Expectancy Table Beneficiaries use this Single Life Expectancy Table based on their age in the year after the IRA owner's death. 2002-62, 2002-2 CB 710, and Notice 2004-15, 2004-1 CB 526. A special rule applies to determine the designated beneficiary's remaining life expectancy if the employee's sole beneficiary is the employee's surviving spouse. His daughter, Susan, is the beneficiary on his account. The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. George's non-spouse beneficiary, Rose, was 75 in the year he died. documents in the last year, 83 On top of that, IRS issued new RMD life expectancy tables for 2022 RMDs, but the tables don't apply for all RMDs taken in 2022. This notice modifies and supersedes Rev. The rates of mortality improvement used for this purpose were the ones that were used in developing the Annuity 2000 Basic Table. Information about the 2000-2004 Payout Annuity Mortality Experience Study and the experience tables, can be found at https://www.actuary.org/sites/default/files/files/publications/Payout_Annuity_Report_09-28-11.pdf. Rul. 10. 2014-50, Agencies, Issuers, Owners, and Operators of low-income housing projects may treat these individuals as if they were Displaced Individuals (defined under section 5.02 of Rev. 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 202027 through 202052 is in Internal Revenue Bulletin 202052, dated December 27, 2021. These synopses are intended only as aids to the reader in identifying the subject matter covered. George died at age 80 in 2018. On November 8, 2019, the Department of the Treasury (Treasury Department) and the IRS published proposed regulations (REG-132210-18) under section 401(a)(9) in the Federal Register (84 FR 60812) (the proposed regulations) setting out updated life expectancy and distribution tables. Proc. Section 72(t)(2)(A)(iv) provides an exception from this additional income tax that applies in the case of a series of substantially equal periodic payments made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and the designated beneficiary. Starting in 2022, the beneficiary's RMD is based on the new tables, using the age for which the life expectancy was originally determined. Section 401(a)(9)(E)(i) provides that the term designated beneficiary means any individual designated as a beneficiary by the employee. 6. Under the new 2022 tables, the . If the account balance is, say $500,000, dividing the amount by that factor results in a required minimum distribution of about $20,325.00. If the original deadline for this requirement is on or after January 1, 2022, and on or before June 30, 2022, then that deadline is extended to June 30, 2023. The official version of IRS Publication 590-B for the 2021 tax year includes the new life expectancy tables used to calculate RMDs from retirement accounts. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. In November 2020, the IRS released new proposed life expectancy tables for calculating required minimum distributions (RMDs) from IRA and employer retirement accounts. (b) One-time change from fixed amortization method or fixed annuitization method to required minimum distribution method. (a) Complete depletion of assets. 03/01/2023, 828 documents in the last year, 474 After the proposed regulations were published, the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was enacted as Division O of the Further Consolidated Appropriations Act, Public Law 116-94. Accordingly, 26 CFR part 1 is amended as follows: Paragraph 1. Proc. Small businesses generally comply with the minimum required distribution rules Start Printed Page 72477using either third-party administrators or software, creating economies of scale that mitigate the cost of updating life expectancy tables. 2 See https://www.fema.gov/coronavirus/disaster-declarations. Learn more here. legal research should verify their results against an official edition of For purposes of 42(j)(4)(E) both in the case of a casualty loss not due to a pre-COVID-19-pandemic Major Disaster and in situations governed by section 8.02 of Rev. Required Minimum Distributions for IRA Beneficiaries COVID-19 Relief for Retirement Plans and IRAs Information on this page may be affected by coronavirus relief for retirement plans and IRAs. 828, as clarified by Notice 2021-17, 2021-14 I.R.B. If the original placed-in-service deadline is the close of calendar year 2021 and the original deadline for the 10-percent test in 42(h)(1)(E)(ii) was before April 1, 2020, the new placed-in-service deadline is the close of calendar year 2022 (that is, December 31, 2022). IRS guidance on new life expectancy tables and safe-harbor maximum . For background on the requirements under 142(d) and 147(d) that are receiving an extension under this notice of the relief provided under Notice 2021-12, refer to Section II.B of Notice 2021-12. Paragraphs (b), (c), and (d) of this section set forth these tables. edition of the Federal Register. Please be advised that prior to distributing re-branded content, you must send a proof to [emailprotected] for approval. In the case of a defined contribution plan, 1.401(a)(9)-5 provides generally that an individual's required minimum distribution for a distribution calendar year is determined by dividing the individual's account balance determined under 1.401(a)(9)-5, Q&A-3, by the applicable distribution period. For 2020, the distribution period that applies for the beneficiary is 12.7 years (the period applicable for a 76-year-old under the Single Life Table in formerly applicable 1.401(a)(9)-9), and for 2021, it is 11.7 years (the original distribution period, reduced by 1 year). Note that section 401(a)(9)(H) does not apply to an eligible deferred compensation plan under section 457(b) maintained by an organization that is not an eligible employer described in section 457(e)(1)(A) (because such a plan is not an eligible retirement plan described in section 402(c)(8)(B)). Notice 2021-17, published on April 5, 2021, clarified Notice 2021-12 by providing a more precise citation in Section IV.E of that notice. Marshall, of the Office of the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). Individuals can calculate the amount of their RMD by dividing the accumulated retirement plan account balance by the updated IRS life expectancy on the agency's website. Until the restoration is completed, to determine the credit amount allowable during the reasonable restoration period for a building described in section 8 of Rev. For example, if an IRA owner starts distributions from an IRA in 2023 at age 50, and applies either the required minimum distribution method or fixed amortization method using the Joint and Last Survivor Table for the IRA owner and the designated beneficiary, and the beneficiaries on January 1, 2023 are 25 and 55 years old, the number of years used to calculate the payment for 2023 would be 40.2 (the entry from the Joint and Last Survivor Table for ages 50 and 55), even if later in 2023 the 55-year-old is eliminated as a designated beneficiary. 2014-49 or under Rev. .04 Application to section 72(q). [FR Doc. The life expectancy tables and Uniform Lifetime Table under these regulations apply for distribution calendar years beginning on or after January 1, 2022. A similar transition rule applies if an employee's sole beneficiary is the employee's surviving spouse and the spouse died before January 1, 2022. Single Life . Beginning on January 1, 2023, for this purpose reasonable notice again is generally no more than 15 days. Section 401(a)(9)(H)(iii) provides that if an eligible designated beneficiary dies prior to the distribution of the employee's entire interest, the remaining interest must be distributed within 10 years after the death of the eligible designated beneficiary. Part II.Treaties and Tax Legislation. This notice updates the life expectancy and mortality tables used to determine substantially equal periodic payments under the methods set forth in Rev. 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