Life expectancy tables used for 72t distributions

Which life expectancy tables can be used to determine 72t distributions?

The life expectancy tables that can be used for 72t distributions are:

1. Uniform Lifetime Table (Table III)

Longer life, lower percentage of balance withdrawn.

Example: For people age 56 the life expectancy is 40.7.

2. Single Life Expectancy Table (Table I)

Shorter life, higher percentage of balance withdrawn.

Example: For people age 56 the life expectancy is 28.7.

3. Joint Life and Last Survivor Table (Table II)

Life expectancy is based on the age of the owner and the beneficiary. If there is more than one beneficiary use the age of the oldest beneficiary. The life expectancy factor may be more or less than using the tables above based on the age of the beneficiary. (See IRS Publication 590, Appendix C)

In the case of the RMD method, the same life expectancy table that is used for the first distribution year must be used in each following year.

Example: The taxpayer uses the single life expectancy table for the RMD method in the first distribution year; the same table must be used in subsequent distribution years.

Note: These tables are not subject to change depending on circumstace, such as early plans for retirement.