The Office of Management and Budget is now reviewing updated life expectancy and distribution period tables for purposes of the required minimum distribution rules.
The Treasury Department sent the updated tables to the OMB in response to President Trump’s Aug. 31, 2018 executive order, which included a directive to Treasury to review the rules on RMDs from retirement plans to see if retirees could keep more money in 401(k)s and IRAs for a longer time. The Treasury intends the update to make the tables more accuratelyreflect life expectancies based on the latest available empirical data.
American Retirement Association CEO Brian Graff and Martin Pippins, Executive Director of the ASPPA College of Pension Actuaries (ACOPA), sent a letter to the Acting Treasury Benefits Tax Counsel on Oct. 5, 2018, in which they expressed the support of the ARA for such an update, which it says “should result in greater benefit security for participants, as less would be required to be distributed each year than under the 2002 final regulations.” The letter also contains recommendations on the implementation of such updates.
