IRS Updates Defined Benefit Mortality Table Regulations, Substitute Table Procedures; Issues 417(e)(3) and Static Tables (T.D. 9826, Rev. Proc. 2017-55, Notice 2017-60)

The IRS has issued final regulations prescribing general mortality tables to be used by most defined benefit pension plans that replace the 2008 mortality tables, and has issued updated procedures for requesting approval to use plan-specific substitute mortality tables in accordance with Code Sec. 430(h). The new procedures provide a simpler method for obtaining approval of a substitute mortality table, and accommodates the use of substitute mortality tables for plans with smaller populations. The IRS has also issued the mortality table used for determining minimum present value under Code Sec. 417(e)(3) for distributions with annuity starting dates that occur during stability periods beginning in the 2018 calendar year, an updated static mortality tables that apply for plan years beginning during 2017 with respect to valuation dates occurring during 2018.

Rev. Proc. 2008-62, 2008-2 CB 935, is modified and superseded, and Rev. Proc. 2017-4, I.R.B. 2017-1, 146, is modified to refer to this revenue procedure in lieu of Rev. Proc. 2008-62. The regulations apply to plan years beginning on or after January 1, 2018. The updated substitute table procedure is effective for all requests for approval to use plan-specific substitute mortality tables for which the requested effective plan year begins on or after January 1, 2018.

T.D. 9826

Notice 2017-60

Rev. Proc. 2017-55

Other References:

Code Sec. 430

CCH Reference – 2017FED ¶20,154

CCH Reference – 2017FED ¶20,155

Code Sec. 431

CCH Reference – 2017FED ¶20,174

Code Sec. 433

CCH Reference – 2017FED ¶20,203B

Tax Research Consultant

CCH Reference – TRC RETIRE: 36,156

CCH Reference – TRC RETIRE: 30,556

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