IRS Updates Static Mortality Tables for DB Plans for 2018

By John Iekel • October 04, 2017 • 0 Comments
The IRS announced on Oct. 3 that it has updated the static mortality tables for defined benefit plans for 2018. It made the announcement in Notice 2017-60.

Notice 2017-60 sets forth:

  • the mortality table to be used to determine minimum lump sums for distributions during stability periods beginning in the 2018 calendar year, and

  • updated mortality tables for 2018 determined under prior regulations.

Notice 2017-60 sets forth the mortality table that is used for purposes of 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 2018 calendar year.
The notice also provides updated static mortality tables determined using the methodology in Treas. Reg. §1.430(h)(3)-1 before it was amended by T.D. 9826.

Application

The updated mortality tables determined under prior regulations apply to certain plans with end-of-year valuation dates, and certain plans for which a transition option under new regulations is used for the 2018 plan year.

These updated static mortality tables apply for plan years beginning during 2017 regarding valuation dates occurring during 2018. They also apply for the plan year beginning during 2018 if the option under Treas. Reg. §1.430(h)(3)-1(f)(2) is used for the plan. The option under Treas. Reg. §1.430(h)(3)-1(f)(2), which is available under certain circumstances for valuation dates occurring during 2018, is to apply mortality tables determined in accordance with regulations previously in effect.