Life Expectancy Tables
L1: Life Expectancy TablesMy wife is primary beneficiary of my IRA, my childern are contingent beneficiaries. For purposes of aSEPP using the amortization method, is it required touse the “Joint Life Calculation Table”, or can I use “Single Life”, based on my age as of Dec. 31stin the year that distributions begin?2009-05-18 18:18, By: Jimbo, IP: [22.214.171.124]
L2: Life Expectancy TablesUse the single life table.
Joint life expectancies can be used, but rarely are because use of your single life expectancy produces a larger SEPP distribution for each dollar of initial account balance. It is recommended that youuse the highest interest rate and the single life table to generate the distribution you need, and if you have extra funds available in the IRA, transfer them to a non SEPP IRA account before you initiate your plan. You will then have an account you can draw from in emergencies instead of busting your SEPP plan by taking extra amounts from the SEPP IRA account.2009-05-18 18:27, By: Alan S., IP: [126.96.36.199]
L3: Life Expectancy TablesThanks for both answers Alan.2009-05-18 21:37, By: Jimbo, IP: [188.8.131.52]
L3: Life Expectancy TablesAlan, one more question. Where can I find the most current single life table for rhe SEPP calc?2009-05-18 21:40, By: Jimbo, IP: [184.108.40.206]
L4: Life Expectancy TablesIf you choose not to use our calculators, look in IRS Publication 590 for 2008 under
(Single Life Expectancy)
(For Use by Beneficiaries)
If is about mid-way through http://www.irs.gov/publications/p590/ar02.html#en_US_publink10006620
2009-05-18 21:51, By: Gfw, IP: [220.127.116.11]
L5: Life Expectancy TablesThanks Gfw. I do use your online calculator, but still want to know the genesis of the inputs.
BTW, this is a great website. I was referred to it by the IRS.2009-05-18 21:57, By: JImbo, IP: [18.104.22.168]
L6: Life Expectancy TablesNeed more help Gfw.
I had a couple of other questions and called the IRS hotline again. The guy told me that for the SEPP amortization method and life expectancy table that I should be using table III in Pub 590. I told him I’m 57 and the table starts at 70 years old and that a 70 year old doesn’t need a SEPP. He said that the table is published in full in RR 2002-62. That table puts a 57 year olds expectancy at 39.7 years. Table 1 in pub 590 puts a 57 year olds expectancy at 27.9 years.One more time please, which table is the correct one to use for calculating life expectancy for the purpose of SEPP and the amortizing method.2009-05-19 02:38, By: Jimbo, IP: [22.214.171.124]
L7: Life Expectancy TablesRevenue Ruling 2002-62 indicates that you can use either of 3 tables, but they only published the Uniform Table as Appendix A in the RR. The RR indicates that the single life table is the one in the IRS Regs 1.401(a)9-9, which is the same table as Table I in Pub 590. The following is a link to the IRS Reg:
http://www.taxalmanac.org/index.php/Treasury_Regulations%2C_Subchapter_A%2C_Sec._1.401%28a%29%289%29-92009-05-19 04:16, By: Alan S., IP: [126.96.36.199]
L7: Life Expectancy TablesThe table that I pointed you to is the same as the first table that Alan pointed you to – at age 57 single life expectancy is 27.9 years.
While there are 3 “life expectancy” tables, you really only need to look the single life table – the other tables will only result in alower annual distribution. All three life expectancy tables were produced from the same mortality table that was initially released in Rev. Rul. 2002-62.
The person from the IRS that referred you to this site gave you good advice. The person that told you that you had to use table 3 gave you bad advice. The IRS hotline is not always managed by “people in the know”.
2009-05-19 10:56, By: Gfw, IP: [188.8.131.52]
L8: Life Expectancy TablesGfw- Thanks again for the reassurance.2009-05-19 14:15, By: Jimbo, IP: [184.108.40.206]