IRS Issues Mortality Tables for 2017

By ASPPA Net Staff • September 06, 2016 • 0 Comments
The IRS in Notice 2016-50 has announced the mortality tables for minimum funding and present value requirements for use in 2017. The IRS issued the notice on Sept. 3.

The notice provides updated static mortality tables to be used for defined benefit plans under Internal Revenue Code Section 430(h)(3)(A) Section 303(h)(3)(A) of ERISA. These updated tables, which are being issued using the methodology in the existing final regulations under Section 430(h)(3)(A), apply for purposes of calculating the funding target and other items for valuation dates occurring during calendar year 2017.

Notice 2016-50 also includes a modified unisex version of the mortality tables for use in determining minimum present value under Internal Revenue Code Section 417(e)(3) and Section 205(g)(3) of ERISA for distributions with annuity starting dates that occur during stability periods beginning in the 2017 calendar year.

The mortality rates in these tables have been developed from the base mortality rates, projection factors, and weighting factors set forth in Treas. Reg. §1.430(h)(3)-1(d), using the blending techniques described in the preamble to those regulations.

The static mortality tables that apply under Section 430(h)(3)(A) for valuation dates occurring during 2017 are set forth in the appendix to the notice.

The static mortality tables that apply under Section 417(e)(3) for distributions with annuity starting dates occurring during stability periods beginning in 2016 also are set forth in the appendix to the notice, in the column labeled “Unisex.” These tables were derived from the tables used for Section 430(h)(3)(A) following the procedures set forth in Revenue Ruling 2007-67.




Comments (0)