<<I am trying to calculate the Required Minimum Distributions for DH and myself for this year into the future. In addition to our separate retirement accounts, I have an inherited IRA (from my mother).
DH will be 70 at the end of 2022. I will be 69 at the end of 2022.
Required minimum distributions [of an IRA] during your lifetime are based on a distribution period that is generally determined using Table III (Uniform Lifetime) in Appendix B.
I am confused because there are different tables with different life expectancies.
This is the table used by the IRS calculator. That is itself confusing because it uses the factor of 27.4 for age 72.
IRA Required Minimum Distribution Worksheet, Table III Uniform Lifetime (this is a pdf so I can’t post the link)
Age Distribution Period
74 23.8 >>
There is an fundamental ERROR in the table you posted. There are ZERO RMDs for age 70 or 71 in the 2022 table.
The link at the bottom of the page (https://www.investor.gov/financial-tools-calculators/calcula…) unfortunately links to:
“Publication 590-B (2020), Distributions from Individual Retirement Arrangements (IRAs)
For use in preparing 2020 Returns”
IOW, it’s obsolete!
For DH & yourself: under the SECURE Act, RMDs from your own IRAs/401k/403b/etc. don’t start until the account holder turns 72.
This link has correct tables: https://thefinancebuff.com/new-rmd-tables-2022.html
The 27.4 distribution period applies to age 72 using the 2022 Table III (Uniform Lifetime Table), which is when you & DH will each begin RMDs.
Table I – Single Life Expectancy. Use for IRAs inherited before 2021 (There are NO RMDs for IRAs inherited from 1 JAN, 2021 by most non-spouses. IRA must be liquidated using 10 year rule)
Key quote from Finance Buff article:
<<Now, if you already started taking RMDs from an inherited account and the tables changed, the IRS allows you a one-time reset in 2022.
You look up the factor in the new Single Life Table for the year when you first started taking RMD from the inherited account. Then you reduce that factor by the number of years since then. This makes as if the new tables were in effect back when you started. After this one-time reset in 2022, you continue to reduce the factor by 1 in each subsequent year.>>
It’s confusing but it works like this (I think):
You are 69 in 2022. Assume Mom passed when you were 66. Under the old table, age 66 factor is 20.2.
New 2022 table age 66 factor is 22.
Three years have elapsed (22-3= 19) so, 19 is the factor you would use this year. (Write it down)
Next year subtract 1, 2023 factor will be 18 and so on.
Do NOT reference the table again (it’s only to get you started), just keep subtracting 1 each year.
Table III- Uniform Life Table. Use for DH in 2 years & you in 3 years for RMDs out of your own IRA.