News & Announcements
Make Sure Participants Take Their Required Minimum Distributions
OCTOBER 2, 2018
Most plan participants must begin taking required minimum distributions (RMDs) from their accounts for the year they reach age 70 ½ or for the year in which they retire, whichever is later. However, participants who are 5% owners and those in plans that apply pre-SBJPA (Small Business Job Protection Act of 1996) RMD rules must begin taking RMDs for the year they reach age 70 ½.
Plan sponsors are responsible for ensuring that RMDs are taken every year. Failure to make required distributions is a violation of plan rules and could result in penalties and plan disqualification.
To see a list of participants who will reach, or have already reached, age 70 ½ this year, access the Advanced Report tab in the Reports & Analysis section of the website. You can generate a custom participant report by following these steps:
- In the Census section, check the box for “Search” and “Show” next to “Birth Date.” In the drop-down menu, select “Less Than” and then enter “06/30/1948.”
- In the Financial section, check the box for “Search” next to “Portfolio Balance.” In the drop-down menu, select “Greater Than” and then enter “0.00.”
- Click the “Run Report” button
Learn more about RMDs in the Plan Distributions section of the Admin Guide (PDF).
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.