NEWSLETTERS

New Minimum Distribution Table
  (From Proposed Regulations)

Age     Divisor     Age     Divisor     Age    Divisor     Age     Divisor      Age    Divisor70        26.2            77        20.1        84       14.5          91        9.9            98     6.5
71        25.3            78        19.2        85       13.8          92        9.4            99     6.1
72        24.4            79        18.4        86       13.1          93        8.8          100     5.7
73        23.5            80        17.6        87       12.4          94        8.3          101     5.3
74        22.7            81        16.8        88       11.8          95        7.8          102     5.0
75        21.8            82        16.0        89       11.1          96        7.3          103     4.7
76        20.9            83        15.3        90       10.5          97        6.9          104     4.4

Example: Currently a 72-year-old with $100,000 in a qualified plan account balance, and a spouse who is 70, would have to take a minimum distribution of $5,050.50 using a divisor of 19.8. Under the new rules the same individual would only have to take $4,098.36 using a divisor of 24.4.

The proposed regulations would allow for lifetime distributions at a rate consistent with the possibility that an employee's beneficiary is subject to change until the death of the employee and ultimately may be a beneficiary more than 10 years younger. The proposed uniform distribution period — the joint life expectancy of an individual and a survivor 10 years younger — would lengthen lifetime distribution for most employees and beneficiaries.

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