In case you didn't see this, IRS changed the RMD tables effective January 2022 for 2022 and later distributions. Life Expectancy tables have been adjusted leading to the change.

EXAMPLE: 2021 age 75 Distribution Period was 22.9
2022 age 75 Distribution Period is now 24.6

I couldn't reconcile my Investment company report of how much my RMD is supposed to be, versus the table I was using. I called to ask why the numbers were different. Account advisor told me about the change.

Going on line, it is difficult (but not impossible) to find the new tables.

Please post when you find them.

Found this.

"With the IRS raising the average life expectancy from 82.4 to 84.6, retirees will presumably need to spread their assets over more years. As a result, RMDs that begin in 2022 will be less than they were under the previous formula, which had been in place since 2002."

Life Expectancy Table

Thanks. Does that mean the RMD will be less or more??

quote:

Originally posted by ZSMICHAEL:
Thanks. Does that mean the RMD will be less or more??

Taking less from your IRA!

Here is one: 2022 RMD Table

Here is one with a 2021 and 2022 comparison: Comparison

quote:

Originally posted by ZSMICHAEL:
Thanks. Does that mean the RMD will be less or more??

Less ... balance divided by distribution period.

A little more information from Forbes: FORBES article

quote:

Originally posted by old dino:

quote:

Originally posted by ZSMICHAEL:
Thanks. Does that mean the RMD will be less or more??

Less ... balance divided by distribution period.

What balance? Beginning of the period, end of the period, average during the period, or at some arbitrary date during the period? If the calculation includes end-of-period-data (eopd), it is impossible to calculate the proper RMD until after the period closes, also, if eopd is relevant, distributions during the period will change the calculation recursively.

IIRC, it is the amount of the account(s) on December 31st of the year prior to the distribution.

quote:

Originally posted by 229DAK:
IIRC, it is the amount of the account(s) on December 31st of the year prior to the distribution.

You're right about the date. The owner doesn't really have to do anything except make sure the withdraw happens the following year so as to avoid the 50% penalty; the company will do the calc for you (and helpfully for the IRS)

This is from Charles Schwab's info page, note their comment that som3times it changes:

The amount of your RMD is usually determined by the fair market value (FMV) of your IRA as of December 31 of the previous year, factored by your age and your life expectancy using the uniform life expectancy method. Sometimes FMV and RMD calculations need to be adjusted after December 31. If you had a transfer or rollover to your Schwab retirement account(s), a conversion from a traditional IRA to a Roth IRA and back, or any correction for security price after year-end,

Anybody know why?

quote:

Originally posted by Johnny 3eagles:
I couldn't reconcile my Investment company report of how much my RMD is supposed to be, versus the table I was using. I called to ask why the numbers were different. Account advisor told me about the change.

Had the same issue with my Mom's numbers. As of a couple of weeks ago I couldn't find an updated chart at the IRS website.

An addition……

Inherited IRAs now have a time period of 10yrs for full dispersion.

No longer a base percentage annually

I kept questioning Fidelity last year about it

quote:

Originally posted by ZSMICHAEL:
Anybody know why?

Life expectancy increased. smaller mandatory withdrawal will theoretically allow the fund to last longer.

I'm in the process of doing an Excel Retirement Tax Planning ahead of RMDs as I want to avoid getting pushed up into higher tax brackets. I plan to do this by doing Roth conversions ahead of when I have to do RMDs.

Here's one table I found some months ago.

New Uniform Life Tables for calculating RMDs take effect January 1, 2022

[quote]Life expectancy increased. smaller mandatory withdrawal will theoretically allow the fund to last longer.
^^^^^^^^
I am not complaining, but I do recall some statistic stating life expectancy decreased due to Covid.

quote:

Originally posted by wishfull thinker:

You're right about the date. The owner doesn't really have to do anything except make sure the withdraw happens the following year so as to avoid the 50% penalty; the company will do the calc for you (and helpfully for the IRS)

Making sure the withdrawal happens is pretty big because of the 50% penalty. I wouldn't wait for whoever is holding my IRA to do RMD without my direction.

quote:

Making sure the withdrawal happens is pretty big because of the 50% penalty. I wouldn't wait for whoever is holding my IRA to do RMD without my direction.

^^^^^^^^^^^^^^^
I do the same when it comes to anything with my brokerage accounts.

So, if I interpret this chart correctly, the IRS believes I'm going to live to 90. That will piss off my beneficiaries.

Less. The number is a divisor. Your year end IRA balance (fair market value) divided by the divisor.

quote:

Originally posted by Rey HRH:

quote:

Originally posted by wishfull thinker:

You're right about the date. The owner doesn't really have to do anything except make sure the withdraw happens the following year so as to avoid the 50% penalty; the company will do the calc for you (and helpfully for the IRS)

Making sure the withdrawal happens is pretty big because of the 50% penalty. I wouldn't wait for whoever is holding my IRA to do RMD without my direction.

Your IRA custodian has to do the calculation for you. You have to tell them to withdraw it.