Revised Life Expectancy Tables
In addition to the changes proposed in the Family Savings Act of 2018, the president signed an executive order on August 31 which included a provision asking for a review of the life expectancy tables for taking mandatory withdrawals which would slightly lower required minimum distributions.
This change does not require legislation. The Treasury can do this like they have done in the past. The life expectancy tables for calculating RMDs were last updated in 2002, so it’s time for an update. This will lower RMDs somewhat, but don’t expect huge savings since the average life expectancy may only increase two years or so. The last major change only increased life expectancy just over one year.
Keep an eye on these proposals and we’ll see if any get enacted.
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