IRS Finalizes Revised Mortality Tables for 2018

Volume 40 | Issue 116

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The IRS released final regulations on applicable mortality tables used by single-employer ERISA defined benefit plans to determine minimum funding requirements for years beginning after 2017, generally using the Society of Actuaries’ RP-2014 study basis. Although the regulation includes a limited transition option for using the old tables for purposes of funding and benefit restrictions, the updated mortality table forms the basis for 417(e)(3) minimum lump sum determinations regardless of whether the transition option is used.

The revised unisex table used for minimum and maximum benefits under IRC 417(e) and 415 were announced in Notice 2017-60. In addition, Revenue Procedure 2017-55 provides instructions for obtaining approval to use plan-specific mortality tables for pension funding and related purposes in lieu of the standard mortality tables generally required to be used.

Watch for additional details in an upcoming issue of For Your Information.