Calculating the funding target and other items for valuation dates occurring during the 2025 calendar year
The IRS today released an advance version of Notice 2024-42 that specifies updated static mortality tables to be used for qualified retirement plans that are defined benefit pension plans under section 430(h)(3)(A) and under provisions of the Employee Retirement Income Security Act of 1974 (ERISA). These updated static mortality tables apply for purposes of calculating the funding target and other items for valuation dates occurring during the 2025 calendar year.
Notice 2024-42 also includes a modified unisex version of the mortality tables for use in determining minimum present value under 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 2025 calendar year.