IRS Revises the Required Minimum Distribution Tables December 10, 2019

IRS says that we are going to live a little longer–or at least the RMD tables say that.

In newly released proposed regulations, the IRS updated the life expectancy tables used for calculating required minimum distributions (RMD) from qualified retirement plans, IRAs and annuities. The tables were last updated in 2002.

RMD Tables - CPE for CPAs

A 70-year-old IRA owner who uses the Uniform Lifetime Table to calculate her RMD under the existing regulations must use a life expectancy of 27.4 years. Using the updated tables in the proposed regulations, the account owner would use 29.1 years to calculate her RMD. For an IRA valued at $1 million, the first year RMD would decrease by only $2,132. That’s not much difference when you realize that life expectancy for those 65 years or older has increased by approximately 8% since the last update to the tables in 2002. But, at least our retirement money will last a little longer because of the change.

The life expectancy tables under the proposed regulations would apply for distribution calendar years beginning on or after Jan. 1, 2021. Thus, for example, for an individual who attains age 70 1⁄2 during 2020 (so that the minimum required distribution for the distribution calendar year 2020 is due April 1, 2021), the final regulations would not apply to the minimum required distribution for the individual’s 2020 distribution calendar year, but would apply to the minimum required distribution for the individual’s 2021 distribution calendar year (which is due Dec. 31, 2021).


The basic 2020 Medicare B monthly premium will increase to $144.60 (a 6.7% increase from 2019). Because of means testing, a senior whose 2018 MAGI exceeded $174,000 for MFJ and $87,000 for single will pay a higher Medicare B premium than the basic amount. Medicare D premiums are down a few cents from the 2019 numbers.

If 2018 MAGI is2020 premiums are
IndividualMarried filing jointMonthly Part B premiumMonthly Part D surcharge
Under $87,000Under $174,000$144.60$0.00
$87,001-$109,000$174,001 -$218,000$202.40$12.42

Sharon Kreider, CPA, has helped more than 15,000 California tax preparers annually get ready for tax season. She also presents regularly for the AICPA, the California Society of Enrolled Agents, CCH Audio, and Western CPE. You’ll benefit from the detailed, hands-on tax knowledge Sharon will share with you—knowledge she gained through her extremely busy, high-income tax practice in Silicon Valley. With her dynamic presentation style, Sharon will demystify complex individual and business tax legislation. She’s a national lecturer for business and professional groups and consistently receives outstanding evaluations. In 2014, she was awarded the prestigious AICPA 2014 Sidney Kess Award for Excellence in Continuing Education.

View Author Page


How The $3.5 Trillion Budget Blueprint Could Impact Your Clients

The new reporting requirements on brokers are addressed in Section 80603 of the bill. “Broker,” by definition in Sec. 6045 (c)(1), is expanded to include “any other person who (for a consideration) regularly acts as a middleman with respect to property or services…A person shall not be treated as a broker with respect to activities consisting of managing a farm on behalf of another person.” In turn, the bill defines a “digital asset” as “any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary.