New IRS life expectancy tables will slightly reduce RMDs in thef uture

The IRS has proposed new life expectancy tables that reflect that Americans are living longer (and therefore their money needs to as well). The IRS tables that may go into effect in 2021 will slightly reduce the percentage of the account balances that an individual needs to take out of his or her account each year to satisfy the Required Minimum Distribution rules. This means lower taxes for individuals who don't need to withdraw more than their RMDs each year. This is good news. Our software modeling will take this into account when developing retirement cash flow projections for client retirement budgets and future tax liabilities.