irs issues proposed regulations that would revise minimum distribution rules

Current law requires taxpayers to take minimum distributions from their retirement accounts commencing at age 70 and 1/2.  The minimum distribution is calculated using life expectancy tables.  Currently, a person who takes his first minimum distribution would use a life expectancy of 27.4 years.  The would result in the first minimum distribution being equal to 1/27.4 of the balance of the retirement account.  The revised regulations would increase taxpayers' life expectancy.  For example, the first minimum distribution would be based upon a life expectancy of 29.1 years.  The result is that required minimum distributions would be reduced and taxpayers will retain larger amounts in their retirement plans to account for the possibility of living longer.