IRS Issues Regulations for Plan-Specific Substitute Mortality Tables for Determining Present Value

The Internal Revenue Service (IRS) has released final regulations regarding the use of mortality experience data for the COVID-19 pandemic period that supplement the methodology for developing substitute mortality tables provided in Treasury Regulation 1.430(h)(3)-2. Specifically, the final rule provides an adjustment factor to be applied to the standard mortality table for 2020, 2021, and 2022.

These regulations apply for plan years beginning on or after January 1, 2025.