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Question on Life Expectancy calculation

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Byjay

L1: Question on Life Expectancy calculationI am using the amortization method in my proposed SEPP (subjectto RR 2002-62 rules) and am 43 years old. RR 2002-62 says: The life expectancy tables that can be used to determine distribution periods are: (1) the uniform lifetime table in Appendix A, or (2) the single life expectancy table in 1.401(a)(9)-9, Q&A-1 of the Income Tax Regulations or (3) the joint and last survivor table in 1.401(a)(9)-9, Q&A-3. Using “(1) the uniform life table in Appendix A”, the life expectancy for age 43 is 53.4. Howeverthe calculator on the 72t.net site using the “New MD Factor” comes up with 40.7 years. I assume that your calculator is using “(2) the single life expectancy table…”. Can you please provide some information on how the 40.7 years is calculated from the qx and lx factors listed in the mortality table. I am in the process of double checking all aspects of my SEPP and want to make sure I fully understand all the numbers. Thanks again for this invaluable web site. 2002-11-20 11:02, By: Jay, IP: [127.0.0.1]
L2: Question on Life Expectancy calculationCheck out http://72t.net/MN_ArticlesShow.aspx?WA=38- it will answer most of you questions. If you are looking for actuarial forumlas, you may want to check an actuarial web site.2002-11-20 11:45, By: Gfw, IP: [127.0.0.1]

L2: Question on Life Expectancy calculationThanks for the response. After much searching I finally found an official IRS document that references 1.401(a)(9)-9, Q&A-1. Here is a link if anyone else is interested http://www.irs.gov/pub/irs-regs/td8987.pdfon pages 103 and 104. It has the actual Single Life Expectancy table rather than the useless mortality factors that are in RR 2002-62. The numbers in that table do match the 72t.net calculator.
Jay2002-11-20 12:18, By: Jay, IP: [127.0.0.1]

L2: Question on Life Expectancy calculationSorry – I thought you were looking for the actuarial forumlas used to convert the lx factors into life expectancy factors. The factors are also available in the supplement to Pub 590 published back in May – on the IRS site, search for publication 590 – it should be at the top of the list and it”s only a few pages long.
Thanks also for the independant verification that we have the right numbers. For us, the table of lx factors is invaluable – we can reproduce with 115 numbers all the hundreds of possible life expectancy factors – single and joint. The IRS was kind enough to send us the table back in April when it was released under the final Minimum Distribution regs.2002-11-20 14:09, By: Gfw, IP: [127.0.0.1]

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