AG Financial Solutions

Required Minimum Distribution

Once you have turned 70 1/2, Internal Revenue Service regulations provide that all tax-sheltered retirement plans have a Required Minimum Distribution ("RMD"). If you have multiple plans [e.g., 403(b), 401(k), 457, IRAs] you must aggregate these RMDs yourself. This may be a reason for you to consider rolling over all of these accounts to MBA.

Regulations further provide that an employee who continues in active ministry with the Assemblies of God may delay the Required Minimum Distribution until the date of actual retirement from ministry.

A 50 percent federal excise tax penalty will apply for failure to elect a Required Minimum Distribution after age 70 1/2, except when continuing active ministry with the Assemblies of God.

If you are turning 70 1/2 this year, you will be notified in July advising you of the RMD requirement. You will be advised of your RMD for the current year and you will be supplied with all the paperwork needed to either begin your distribution or delay your distribution because of active ministry work.

Once we have received your distribution information, we will continue your distribution until you request a change. We will not allow a distribution request that is less than your RMD.

If you have rolled funds into AG Financial during the current year, you must contact the previous institution where your money was invested to find out if the RMD was taken from your account. If it was not, you must supply the balance as of December 31 of the previous year to AG Financial so we will be able to distribute the correct amount to you. You will then be added to our list to receive an RMD each year unless you inform us to make a change in your distribution.

For more information regarding Required Minimum Distibutions, contact AG Financial at: or 1.800.MBA.PLAN.