Single Life Expectancy Table vs. Uniform Lifetime Table

Retirement account holders must take Required Minimum Distributions (RMDs) from their accounts once they reach a certain age. These withdrawals are required for traditional, SEP, and SIMPLE IRAs, as well as 401(k)s. To determine the correct annual withdrawal amount, the IRS provides life expectancy tables. The two most common are the Uniform Lifetime Table and the Single Life Expectancy Table. Each table applies to different individuals based on their relationship to the retirement account. Using the correct table is necessary to satisfy RMD requirements and avoid tax penalties, ensuring that deferred taxes on savings are eventually paid.

The Uniform Lifetime Table

The Uniform Lifetime Table is the standard table used by most retirement account owners to calculate their RMDs. It is for the original owner of a traditional IRA or employer-sponsored plan who has reached RMD age, which is 73 for those born between 1951 and 1959. This table is used by unmarried owners, married owners whose spouse is not more than 10 years younger, and those whose spouse is not the sole beneficiary.

To calculate an RMD, the owner identifies the fair market value of their account on December 31 of the preceding year. They then find their current age on the table to locate the corresponding life expectancy factor. The account balance is divided by this factor to determine the RMD for the year.

For instance, an 80-year-old with an IRA valued at $200,000 on December 31 would find the factor for age 80 is 20.2. Dividing $200,000 by 20.2 results in an RMD of approximately $9,901. This calculation is performed annually using the new account balance and the updated age-based factor.

An exception exists for account owners whose sole beneficiary is a spouse more than 10 years younger. These owners must use the Joint Life and Last Survivor Expectancy Table. This table generally results in a smaller annual RMD, reflecting the couple’s longer joint life expectancy.

The Single Life Expectancy Table

The Single Life Expectancy Table is primarily used by beneficiaries who have inherited a retirement account. Its application is for individuals classified as “Eligible Designated Beneficiaries” (EDBs), which includes the surviving spouse, minor children of the owner, and beneficiaries who are disabled or chronically ill. These beneficiaries can take distributions over their own life expectancy, a method often called a “stretch” IRA.

For the first required distribution, the beneficiary finds their age for the year following the original account owner’s death and uses the corresponding life expectancy factor from the table. This initial factor establishes the timeline for future distributions. Unlike the Uniform Lifetime Table, where the user looks up their new age each year, a beneficiary using the Single Life Table does not.

For every year after the first RMD, the beneficiary simply subtracts one from the previous year’s life expectancy factor to determine the new factor. For example, if a beneficiary’s initial factor at age 45 was 41.9, the factor for the following year would be 40.9, and then 39.9 the year after.

Consider a non-spouse EDB who inherits an IRA and is 50 years old in the year after the owner’s death. They would look up age 50 on the Single Life Expectancy Table to find their initial factor. If the inherited account balance was $300,000, they would divide that amount by their initial factor to find their first RMD, then use the subtract-one method for subsequent years.

Key Distinctions and the 10-Year Rule

The primary distinction between the tables is the user: the Uniform Lifetime Table is for original account owners, while the Single Life Expectancy Table is for beneficiaries who are EDBs. The calculation method also differs. An account owner re-determines their factor each year from the table, whereas a beneficiary establishes an initial factor and subtracts one from it each subsequent year.

The distribution periods in the Uniform Lifetime Table are generally shorter than what a person’s actual single life expectancy would be. This is because the table is constructed based on the joint life expectancy of the account owner and a hypothetical beneficiary who is 10 years younger. This assumption results in a larger life expectancy factor and a smaller RMD for the account owner.

For most non-spouse beneficiaries who are not EDBs, neither of these life expectancy tables will apply. These “non-eligible designated beneficiaries” are subject to the 10-year rule. This rule requires the entire balance of the inherited account to be withdrawn by the end of the 10th calendar year following the original owner’s death.

The rules for this 10-year period vary based on when the original owner died. If the owner died after they were required to start taking their own RMDs, the beneficiary must also take annual distributions during years one through nine. If the owner died before their RMDs began, no annual withdrawals are required, and the beneficiary only needs to withdraw the full balance by the final deadline.