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Ready for RMD Time?

With year-end getting closer, you may want to review your plan’s procedures in preparation for making required minimum distributions (RMDs) to retired employees and beneficiaries.

Generally, plans must make RMDs to retired participants who have reached age 70½ and to any current employees who own 5% or more of the company and are age 70½ or older. (Alternatively, a plan may provide for RMDs to all participants after age 70½, including retirees and current employees regardless of their company ownership status.) RMDs also must be paid to beneficiaries of a deceased employee’s qualified plan account.

Under the general rule, retirees and more than 5% owner/employees must take their first RMD by April 1 of the year following the year they turn age 70½. Your plan must make subsequent RMDs by December 31 of each year. Other rules apply to beneficiaries.

Please contact us if you have questions about making your plan’s 2015 RMDs.

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