January 1, 2003
IRA and Retirement Plan Distribution Rules Changed
Stephen Hosea
Final Treasury Regulations have now been issued concerning minimum distribution rules for IRA's and various qualified retirement plans. The Regulations do not change "required beginning date" for distributions, typically April 1 following the year in which the participant reaches age 70 1/2. However, the computation of minimum distributions has now been greatly simplified by use of a Uniform Lifetime Table (see below).
The rules for distributions after the participant's death (to a spouse, child or other named beneficiary) have now been clarified. Clients are advised to have their estate plans reviewed and updated if they have significant IRA or qualified retirement plan interests.
| UNIFORM LIFETIME TABLE | ||
| Age of Participation | Distribution Period | Applicable Percentages |
| 70 | 27.4 | 3.65% |
| 71 | 26.5 | 3.77% |
| 72 | 25.6 | 3.91% |
| 73 | 24.7 | 4.05% |
| 74 | 23.8 | 4.20% |
| 75 | 22.9 | 4.37% |
| 76 | 22 | 4.54% |
| 77 | 21.2 | 4.72% |
| 78 | 20.3 | 4.93% |
| 79 | 19.5 | 5.13% |
| 80 | 18.7 | 5.35% |
| 81 | 17.9 | 5.59% |
| 82 | 17.1 | 5.85% |
| 83 | 16.3 | 6.13% |
| 84 | 15.5 | 6.45% |
| 85 | 14.8 | 6.76% |
| 86 | 14.1 | 7.09% |
| 87 | 13.4 | 7.46% |
| 88 | 12.7 | 7.87% |
| 89 | 12 | 8.33% |
| 90 | 11.4 | 8.77% |
| 91 | 10.8 | 9.26% |
| 92 | 10.2 | 9.80% |
| 93 | 9.6 | 10.42% |
| 94 | 9.1 | 10.99% |
| 95 | 8.6 | 11.63% |
| 96 | 8.1 | 12.35% |
| 97 | 7.6 | 13.16% |
| 98 | 7.1 | 14.08% |
| 99 | 6.7 | 14.93% |
| 100 | 6.3 | 15.87% |
| 101 | 5.9 | 16.95% |
| 102 | 5.5 | 18.18% |
| 103 | 5.2 | 19.23% |
| 104 | 4.9 | 20.41% |
| 105 | 4.5 | 22.22% |
| 106 | 4.2 | 23.81% |
| 107 | 3.9 | 25.64% |
| 108 | 3.7 | 27.03% |
| 109 | 3.4 | 29.41% |
| 110 | 3.1 | 32.26% |
| 111 | 2.9 | 34.48% |
| 112 | 2.6 | 38.46% |
| 113 | 2.4 | 41.67% |
| 114 | 2.1 | 47.62% |
| 115 & older | 1.9 | 52.63% |
