audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Thanks for the update!
The life expectancy tables and applicable distribution period tables in the regulations generally reflect longer life expectancies than the formerly applicable tables. For example, a 72-year-old IRA owner who applied the former Uniform Lifetime Table to calculate RMDs used a life expectancy of 25.6 years. Applying the Uniform Lifetime Table set forth in the new regulations, a 72-year-old IRA owner will use a life expectancy of 27.4 years to calculate RMDs.
The effect of these changes is to reduce RMDs generally, which will allow participants to retain larger amounts in their retirement plans to account for the possibility they may live longer, the IRS says.
As far as I looked the withdrawal percentages are the same, just that you have an additional 1-1/2 years before you have to start
No, the withdrawal percentages for each age group are slightly lower with the new tables.As far as I looked the withdrawal percentages are the same, just that you have an additional 1-1/2 years before you have to start. That does make sense.
Hopefully Secure Act 2.0 will pass and push it to 75. Yippee, 4.5 more years to do Roth Conversions.
No, the withdrawal percentages for each age group are slightly lower with the new tables.
They now expect people to live a bit longer, so they let you take out a bit less each year.
Bringing this back to the top - my understanding is that 2021 RMDs will be calculated with the old tables and 2022 will be the first year for RMDs with the new tables - correct?
Any new thoughts, given this late-year relief act, as to whether RMDs could get suspended again? I suspect not, but just MHO.
Bringing this back to the top - my understanding is that 2021 RMDs will be calculated with the old tables and 2022 will be the first year for RMDs with the new tables - correct?
Any new thoughts, given this late-year relief act, as to whether RMDs could get suspended again? I suspect not, but just MHO.
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I was actually a little surprised when they bumped the RMD's from 70 1/2 to 72... Still waiting to find out how that screws us.
One way is people who are 70.5 and now delay all withdrawals (conversions) until 72, will allow their accounts to grow, and possibly push them into a higher bracket earlier at some point along the RMD path.
One way is people who are 70.5 and now delay all withdrawals (conversions) until 72, will allow their accounts to grow, and possibly push them into a higher bracket earlier at some point along the RMD path.
Heh, heh, my SWAG is that Uncle needs the money, so probably no RMD "holiday" in 2021. Haven't even heard a holiday mentioned in conjunction with the new relief act, but YMMV.
Definitely a first world problem...