OMB Reviewing Updated Life Expectancy and Distribution Period Tables

The Office of Management and Budget (OMB) is reviewing life expectancy and distribution period tables that have been updated for purposes of the required minimum distribution (RMD) rules. The rules were sent to OMB’s Office of Information and Regulatory Affairs (OIRA).

The Treasury Department sent the updated tables, contained in RIN: 1545-BP11, to the OMB in response to President Trump’s Aug. 31, 2018 executive order, which included a directive to the 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 accurately reflect life expectancies based on the latest available empirical data.

American Retirement Association Executive Director/CEO Brian H. Graff and ACOPA Executive Director Martin L. Pippins on Oct. 5, 2018 sent a letter to 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.