USA – Required minimum distributions
Milliman Employee Benefits Research Group | 20 November 2019
IRS proposes updated tables for required minimum distribution calculations.
The IRS has issued a proposed rule that would amend the life expectancy and distribution period tables used to calculate required minimum distributions (RMDs) from qualified retirement plans, profit-sharing and stock bonus plans, individual retirement accounts and certain other types of plans.
The proposed updated tables reflect longer life expectancies for men and women than are allowed for in the current tables. If adopted, the updated tables will result in smaller required minimum distributions and longer pay-out periods. The IRS proposes to apply the updated tables for distributions beginning on or after 1 January 2021.
A public hearing on the proposed regulations is scheduled for 23 January 2020.
For further details, see Milliman’s Client Action Bulletin.