Broker Check

Updated Required Minimum Distribution (RMD) Tables for 2022

January 31, 2022

With the passing of the SECURE Act the annual Required Minimum Distribution (RMD) rules changed in January 2020.  Prior to this, an executive order was signed to have the IRS review the life expectancy tables used for calculating RMDs to see whether the tables needed to be updated in accordance with increased life expectancies over the years. This was completed and the IRS published an updated set of RMD tables for 2022.

The new tables will slightly lower RMD amounts for most ages. For example, the prior Uniform Life Table for calculating RMDs starting at age 72 used an applicable factor of 25.6, which was then divided by the value of the IRA on December 31st of the year prior, to determine the required amount that needed to be taken in that year (ex. 12/31 prior year value of $100,000 / 25.6 = $3,906.25 RMD).    The new table uses an applicable factor of 27.4 (ex. 12/31 prior year value of $100,000 / 27.4 = $3,649.64 RMD). That equates to a decreased percentage of RMD totaling -6.65% for a 72-year-old. Other ages may have larger percentage changes, lower percentage changes, or no change at all. 

Although the IRS has yet to update its Publication 590-B showing the new tables, they did publish the new tables in the Federal Register, the place for the official records of the federal government. So, custodians have begun using the new tables for RMDs We will continue to monitor our client’s accounts to make sure that their annual RMDs are satisfied from their IRAs, Inherited IRAs, or both in order to avoid a penalty for not satisfying the RMD in a given year.