Industry News

On November 12, 2020, the Internal Revenue Service (IRS) published its final regulations updating the life expectancy and distribution period tables that are used to calculate required minimum distributions (RMDs) from tax-favored employer-provided retirement arrangements, including qualified retirement plans, Internal Revenue Code Section 457 eligible deferred compensation plans, and 403(b) tax-sheltered annuities, as well as individual retirement accounts (IRAs) and annuities.

In November 2019, the IRS issued proposed regulations related to the updated life expectancy tables and uniform lifetime table that would have been applicable to distribution calendar years beginning on or after January 1, 2021. However, under the final regulations, the updated life expectancy tables and uniform lifetime table will apply for distribution calendar years beginning on or after January 1, 2022. The final regulations are effective as of November 12, 2020.

The regulations are available here.