On January 18, 2022, the IRS published Notice 2022-6 Determination of Substantially Equal Periodic Payments.
The new guidance supersedes the original Notice 2002-62 and Notice 2004-15 for Substantially Equal Periodic Payments.
Read the text here: IRS Notice 2022-6 Determination of Substantially Equal Periodic Payments
Below is selected text from the IRS Federal Register regarding the new life expectancy tables that will go into effect for SEPP plans on January 1, 2022. The guidance on how to use the new tables for SEPP plans are not yet clear – we understand that Revenue Ruling 2002-62 is being updated, but we do not have a timeline for completion of the updates. While it seems obvious that new SEPP plans starting after December 31, 2021 and existing plans that recalculate each year should use the updated life expectancy values, it’s important that you seek professional help in determining whether or when you should use the new life expectancy values in your SEPP plan.
The Single Life Expectancy table for ages 30-64 is included below. To view the entire filing, including additional Single Life ages and the Uniform and Joint tables, see the full text here.
Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions
A Rule by the Internal Revenue Service on 11/12/2020
Effective Date: The final regulations contained in this document are effective on November 12, 2020.
Applicability Date: The final regulations in this document apply to distribution calendar years (as defined in § 1.401(a)(9)-5, Q&A-1(b)), beginning on or after January 1, 2022.
The life expectancy tables and mortality rates are also relevant to the application of section 72(t), which imposes an additional income tax on early distributions from qualified retirement plans (including plans qualified under section 401(a) or section 403(a), annuity contracts and other arrangements described in section 403(b), and individual retirement arrangements described in section 408(a) or section 408(b)). Section 72(t)(2)(A)(iv) provides an exception from this additional income tax that applies in the case of a series of substantially equal periodic payments made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and the designated beneficiary. Revenue Ruling 2002-62, 2002-2 C.B. 710, provides that the life expectancy tables set forth in § 1.401(a)(9)” may be used for purposes of determining payments that satisfy the exception under section 72(t)(2)(A)(iv). Rev. Rul. 2002-62 also sets forth a fixed annuitization method of determining payments that satisfy this exception. Under the fixed annuitization method, the annual payment for each year (which is determined only for the first year and not reset for subsequent years) is determined by dividing the account balance by an annuity factor that is the present value of an annuity of $1 per year beginning at the taxpayer’s age when the payments commence and continuing for the life of the taxpayer (or the joint lives of the taxpayer and his or her beneficiary). The annuity factor is derived using the mortality table used to develop the life expectancy tables set forth in § 1.401(a)(9)-9.
§ 1.401(a)(9)-9Life expectancy and distribution period tables.
(a) In general. This section specifies the life expectancy and applicable distribution period tables that apply for purposes of determining required minimum distributions under section 401(a)(9). Paragraphs (b), (c), and (d) of this section set forth these tables. Paragraph (e) of this section provides the mortality rates that are used to develop these tables. Paragraph (f) of this section provides applicability date rules.
(b) Single Life Table. The following table, referred to as the Single Life Table, sets forth the life expectancy of an individual at each age.
| Age | Life expectancy |
| 30 | 55.3 |
| 31 | 54.4 |
| 32 | 53.4 |
| 33 | 52.5 |
| 34 | 51.5 |
| 35 | 50.5 |
| 36 | 49.6 |
| 37 | 48.6 |
| 38 | 47.7 |
| 39 | 46.7 |
| 40 | 45.7 |
| 41 | 44.8 |
| 42 | 43.8 |
| 43 | 42.9 |
| 44 | 41.9 |
| 45 | 41 |
| 46 | 40 |
| 47 | 39 |
| 48 | 38.1 |
| 49 | 37.1 |
| 50 | 36.2 |
| 51 | 35.3 |
| 52 | 34.3 |
| 53 | 33.4 |
| 54 | 32.5 |
| 55 | 31.6 |
| 56 | 30.6 |
| 57 | 29.8 |
| 58 | 28.9 |
| 59 | 28 |
| 60 | 27.1 |
| 61 | 26.2 |
| 62 | 25.4 |
| 63 | 24.5 |
| 64 | 23.7 |