![]() ![]() An individual can’t outlive it as it never reaches zero. Users of this table reference it annually to obtain the new life expectancy factor for the year. Under this table, the beneficiary is considered to be exactly 10 years younger than the owner or participant, regardless of the beneficiary’s actual age or even if no beneficiary has been designated. Uniform Lifetime Table The Uniform Lifetime Table, introduced via the revised proposed regulations of 2001 and incorporated into the final regulations of 2002, is used only by IRA owners and plan participants for calculating lifetime-required distributions. As you can see, our government is deadly serious about the accurate and timely payment of RMDs from IRAs and other retirement plans. Any shortfall in the timely payment of an RMD may result in the assessment of an IRS excise tax penalty equal to 50% of the amount not withdrawn. It is critically important that RMDs be calculated using the appropriate life expectancy table. These life expectancy tables are identified and described below, and are also available at our website ( under the “IRA Resources” tab, as well as in Appendix C of IRS Publication 590 ( under “Forms and Publications”). Introduction of the new life expectancy table was also an attempt by the IRS to answer pleas made by consumers and practitioners for simplification of the RMD rules, which were considered extremely onerous to satisfy and often resulted in financially severe consequences to those unable to master their complexities. Key components of these revised regulations were the introduction of a new life expectancy table to be used by most IRA owners and plan participants and increases in life expectancy factors for the two existing tables, reflecting the longer lives lived by modern-day individuals. For individuals taking their first distribution due to attainment of age 70 ½, the life expectancy factor for age 70 will be used for those born between January 1 and June 30th, while age 71 will be used for those born between July 1 and December 31. The correct age to reference in any of the tables corresponds to the age of the IRA owner, plan participant or beneficiary as of December 31 of the year in question. Sweeping changes to these proposed regulations in 2001 led to the issuance of long-awaited final regulations in 2002, dramatically altering the way owners and beneficiaries of these accounts and plans calculate the distributions they are mandated to take from them. IRS regulations governing required minimum distributions (RMDs) from IRAs and employer-sponsored retirement plans were in proposed form only from 1987-2000. By Marvin Rotenberg, IRA Technical Expert ![]()
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