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Look at the bright side. At the age of 72, your RMD will be less than what I had to withdraw at age 70.

True...but if you chart these two divisors (life expectancy) out and from them, the RMDs required, something very interesting happens.

In the first

 New Life Expectancy Tables for RMDs												New RMD Table + SECURE Act		
Expected Annual Avg Rate of Rtn 5.00%
Tax Savings at Tax Savings at
End of Year Uniform Table yrs Ret Plan Bal End of Previous Year RMD Amount Marginal Rate of Cumulative RMD Not Marginal Rate of Cumulative
Age Existing New Diff Existing New Existing New Difference 22% Tax Savings Taken 22% Tax Savings

70 27.4 29.1 1.7 $1,000,000 $1,000,000 $36,496 $34,364 $2,132 $469 $469 $36,496 $8,029 $8,029
71 26.5 28.2 1.7 $1,011,679 $1,013,918 $38,177 $35,955 $2,222 $489 $958 $38,177 $8,399 $16,428
72 25.6 27.3 1.7 $1,022,177 $1,026,861 $39,929 $37,614 $2,315 $509 $1,467 $509 $16,937
73 24.7 26.4 1.7 $1,031,361 $1,038,710 $41,756 $39,345 $2,410 $530 $1,997 $530 $17,468
74 23.8 25.5 1.7 $1,039,086 $1,049,333 $43,659 $41,150 $2,509 $552 $2,549 $552 $18,020
75 22.9 24.6 1.7 $1,045,198 $1,058,592 $45,642 $43,032 $2,610 $574 $3,124 $574 $18,594
76 22.0 23.7 1.7 $1,049,534 $1,066,337 $47,706 $44,993 $2,713 $597 $3,720 $597 $19,191
77 21.2 22.8 1.6 $1,051,919 $1,072,411 $49,619 $47,036 $2,583 $568 $4,289 $568 $19,759
78 20.3 21.9 1.6 $1,052,416 $1,076,645 $51,843 $49,162 $2,681 $590 $4,879 $590 $20,349
79 19.5 21.0 1.5 $1,050,601 $1,078,857 $53,877 $51,374 $2,503 $551 $5,429 $551 $20,899
80 18.7 20.2 1.5 $1,046,560 $1,078,857 $55,966 $53,409 $2,557 $563 $5,992 $563 $21,462
81 17.9 19.3 1.4 $1,040,124 $1,076,721 $58,107 $55,789 $2,319 $510 $6,502 $510 $21,972
82 17.1 18.4 1.3 $1,031,118 $1,071,979 $60,299 $58,260 $2,040 $449 $6,951 $449 $22,421
83 16.3 17.6 1.3 $1,019,359 $1,064,405 $62,537 $60,478 $2,060 $453 $7,404 $453 $22,874
84 15.5 16.8 1.3 $1,004,663 $1,054,124 $64,817 $62,745 $2,072 $456 $7,859 $456 $23,330
85 14.8 16.0 1.2 $986,838 $1,040,947 $66,678 $65,059 $1,619 $356 $8,216 $356 $23,686
86 14.1 15.2 1.1 $966,168 $1,024,682 $68,523 $67,413 $1,109 $244 $8,460 $244 $23,930
87 13.4 14.4 1.0 $942,528 $1,005,132 $70,338 $69,801 $537 $118 $8,578 $118 $24,048
88 12.7 13.6 0.9 $915,799 $982,098 $72,110 $72,213 $(103) $(23) $8,555 $(23) $24,025
89 12.0 12.9 0.9 $885,874 $955,379 $73,823 $74,060 $(238) $(52) $8,503 $(52) $23,973
90 11.4 12.1 0.7 $852,653 $925,385 $74,794 $76,478 $(1,684) $(370) $8,132 $(370) $23,603
91 10.8 11.4 0.6 $816,752 $891,352 $75,625 $78,189 $(2,564) $(564) $7,568 $(564) $23,039
92 10.2 10.8 0.6 $778,183 $853,821 $76,292 $79,058 $(2,765) $(608) $6,960 $(608) $22,430
93 9.6 10.1 0.5 $736,985 $813,502 $76,769 $80,545 $(3,775) $(831) $6,130 $(831) $21,600
94 9.1 9.5 0.4 $693,227 $769,605 $76,179 $81,011 $(4,832) $(1,063) $5,066 $(1,063) $20,537
95 8.6 8.9 0.3 $647,900 $723,024 $75,337 $81,239 $(5,901) $(1,298) $3,768 $(1,298) $19,238
96 8.1 8.3 0.2 $601,191 $673,874 $74,221 $81,190 $(6,969) $(1,533) $2,235 $(1,533) $17,705
97 7.6 7.8 0.2 $553,319 $622,319 $72,805 $79,784 $(6,979) $(1,535) $700 $(1,535) $16,170
98 7.1 7.3 0.2 $504,539 $569,661 $71,062 $78,036 $(6,974) $(1,534) $(835) $(1,534) $14,636
99 6.7 6.8 0.1 $455,151 $516,207 $67,933 $75,913 $(7,980) $(1,756) $(2,590) $(1,756) $12,880
100 6.3 6.4 0.1 $406,579 $462,309 $64,536 $72,236 $(7,699) $(1,694) $(4,284) $(1,694) $11,186
101 5.9 5.9 0.0 $359,145 $409,577 $60,872 $69,420 $(8,548) $(1,881) $(6,165) $(1,881) $9,306
102 5.5 5.6 0.1 $313,187 $357,165 $56,943 $63,779 $(6,836) $(1,504) $(7,669) $(1,504) $7,802
103 5.2 5.2 0.0 $269,056 $308,055 $51,741 $59,241 $(7,500) $(1,650) $(9,318) $(1,650) $6,152
104 4.9 4.9 0.0 $228,180 $261,254 $46,567 $53,317 $(6,750) $(1,485) $(10,803) $(1,485) $4,667
105 4.5 4.6 0.1 $190,693 $218,334 $42,376 $47,464 $(5,088) $(1,119) $(11,923) $(1,119) $3,547
106 4.2 4.3 0.1 $155,733 $179,413 $37,079 $41,724 $(4,645) $(1,022) $(12,945) $(1,022) $2,526
107 3.9 4.1 0.2 $124,586 $144,574 $31,945 $35,262 $(3,317) $(730) $(13,674) $(730) $1,796
108 3.7 3.9 0.2 $97,273 $114,777 $26,290 $29,430 $(3,140) $(691) $(14,365) $(691) $1,105
109 3.4 3.7 0.3 $74,532 $89,615 $21,921 $24,220 $(2,299) $(506) $(14,871) $(506) $599
110 3.1 3.5 0.4 $55,242 $68,664 $17,820 $19,618 $(1,799) $(396) $(15,266) $(396) $204
111 2.9 3.4 0.5 $39,293 $51,498 $13,549 $15,147 $(1,597) $(351) $(15,618) $(351) $(148)
112 2.6 3.2 0.6 $27,031 $38,169 $10,396 $11,928 $(1,531) $(337) $(15,955) $(337) $(485)
113 2.4 3.1 0.7 $17,466 $27,553 $7,278 $8,888 $(1,611) $(354) $(16,309) $(354) $(839)
114 2.1 3.0 0.9 $10,698 $19,598 $5,094 $6,533 $(1,439) $(316) $(16,626) $(316) $(1,156)
115 2.1 2.9 0.8 $5,884 $13,719 $2,802 $4,731 $(1,929) $(424) $(17,050) $(424) $(1,580)
116 2.1 2.8 0.7 $3,236 $9,438 $1,541 $3,371 $(1,830) $(403) $(17,452) $(403) $(1,982)
117 2.1 2.7 0.6 $1,780 $6,370 $848 $2,359 $(1,512) $(333) $(17,785) $(333) $(2,315)
118 2.1 2.5 0.4 $979 $4,212 $466 $1,685 $(1,218) $(268) $(18,053) $(268) $(2,583)
119 2.1 2.3 0.2 $538 $2,653 $256 $1,154 $(897) $(197) $(18,251) $(197) $(2,780)


ok, this comes out a bit jumbled and I can't figure out how to line up all the columns in this format, but look down the left hand column next to the age. The first column is the current RMD divisor the second is the new RMD divisor and the next column is the difference. Notice the difference remains constant to age 76 then begins declining until age 103 when there is no difference. But what happens as a result of this is the tax savings peaks at age 78, then rolls off and then goes negative at age 88. The reason for this is the balance under the new system is so much higher at that point. However, big picture, the total paid in taxes does not break even until age 98. Now, if SECURE Act kicks in, there's enough tax savings at the front end that the total cumulative tax paid does not get to parity until age 111.

Not much practical application, just interesting

BruceM
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