How would new IRS life expectancy tables change required minimum distributions for inherited IRAs?
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Executive summary
New IRS life‑expectancy tables (effective for calendar years starting Jan. 1, 2022, and reflected in Publication 590‑B) generally raise the denominator used to calculate required minimum distributions (RMDs) for inherited IRAs — for example, a 55‑year‑old’s single‑life factor rose from 29.6 to 31.6, which would lower the RMD by increasing the divisor [1] [2]. The rules for which table to use (Single Life, Uniform Lifetime, or Joint Life and Last Survivor) remain: most non‑spouse beneficiaries use the Single Life table and spouse beneficiaries may use Uniform or Joint tables depending on elections and age differences [3] [2].
1. How the new tables change the math — bigger denominators, smaller annual RMDs
The practical effect in Publication 590‑B is arithmetic: life‑expectancy factors used as denominators were updated (example: 55 → 31.6 under the new table versus 29.6 previously), so annual RMDs computed as prior‑year‑end account balance divided by that factor will generally be smaller for a given beneficiary age, at least immediately after the tables change [1] [2].
2. Which beneficiaries are affected — single vs. spouse vs. special cases
Non‑spouse beneficiaries and many inherited accounts follow the Single Life Expectancy Table, so those beneficiaries see the direct effect of the revised Single table [3] [4]. Spouse beneficiaries can elect to treat the IRA as their own (then use their own rules) or, if taking life‑expectancy payments, use either the Uniform Lifetime Table or the Joint Life and Last Survivor Table when the spouse is more than 10 years younger — those choices determine whether the updated Single table is actually the operative factor [3] [2].
3. Timing and year‑by‑year mechanics — lookups, annual reductions, and exceptions
Beneficiaries determine the applicable life‑expectancy factor based on age in the year after the owner’s death (or other governing year), then reduce that factor by 1.00 for each subsequent distribution year when using the Single Life table; the updated tables apply to distributions beginning Jan. 1, 2022, and examples in IRS guidance show recalculations using the new factors [2] [5] [6]. Not all inherited IRAs use annual life‑expectancy RMDs — accounts subject to the SECURE Act’s 5‑ or 10‑year rules may not use the tables for the full‑distribution requirement [4] [5].
4. Regulatory developments and the 2025 operational deadline
Finalized IRS guidance implemented mechanics for beneficiaries required to take annual RMDs beginning in 2025; for some non‑spouse beneficiaries under the 10‑year/annual RMD split, financial firms and beneficiaries were told annual withdrawals must begin no later than Dec. 31, 2025, to avoid penalties [7]. The IRS’s Publication 590‑B and its Appendix B remain the controlling references for which table and factor to use [5] [2].
5. Practical impacts and industry guidance — who benefits and who must beware
Advisors and industry sources show the obvious: higher life‑expectancy factors lower immediate taxable distributions, which can help beneficiaries defer tax and preserve tax‑deferred growth [8] [9]. However, where the SECURE Act or estate circumstances impose 5‑ or 10‑year full‑payout windows, the life‑expectancy tables do not apply and the updated factors won’t change the outcome [4] [5].
6. Operational traps — responsibility, notice and multiple IRAs
The IRS and industry guidance stress the beneficiary’s responsibility to calculate and take RMDs; custodians aren’t required to notify clients or the IRS when an annual payment is due, although many firms assist clients [10]. RMDs are calculated separately for each IRA, and elections (spouse treating as own, rolling over, etc.) change which table applies and when [8] [10].
7. What reporting and examples show — concrete IRS examples
IRS Publication 590‑B includes worked examples illustrating use of the new tables (e.g., the 55‑year‑old example where 2025’s divisor becomes 27.6 using the 31.6 starting factor less four years of reductions), demonstrating how the tables shift annual RMD calculations in practice [1] [2].
Limitations and final note: the analysis above follows only the documents and industry examples in the provided sources; available sources do not mention any subsequent IRS modifications beyond the 2022‑table update and the 2025 operational guidance cited here [1] [5] [7]. For a specific calculation, consult Publication 590‑B Appendix B and your custodian or tax professional because beneficiary status, the SECURE Act timing rules, and elections materially change which table and factor you must use [2] [4].