Page 12 - Supplement to Income Tax TY2021
P. 12
Recent Tax Developments*
“reset” rule changes this in order to transition to the of the actual 11.7 year life expectancy for 2021. For
new table starting with the 2022 RMD. The reset 2022, the sister’s life expectancy will be 12.1 years (the
rule assumes that the new table applied all along, but “would-have-been” initial life expectancy for 2020
without changing anything for years before 2022. If the of 14.1 years under the new table, reduced by 2 years).
new table had applied in the sister’s first RMD year of As a result of the reset, the sister’s life expectancy
2020, her initial life expectancy would have been 14.1 for 2022 RMD purposes will be 12.1 years rather
years (life expectancy for a 76-year in the new table), than 10.7 years. For 2023, it will be 11.1 years (12.1
instead of the actual 12.7 years, and for 2021 it would years minus 1), and this “minus 1” rule will continue
have been 13.1 years (14.1 years minus 1), instead for each year the sister is alive.
10 | Supplement to J.K. Lasser’s Your Income Tax 2021
