A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your retirement account each year after age 73. Once you have reached this age, IRS regulations require traditional tax-sheltered retirement plans have an RMD. Effective January 1, 2024, if you have a Roth retirement plan account, you are no longer required to take an RMD. Beneficiaries of Roth retirement accounts are still subject to the RMD rules.
Regulations further provide that certain employees who continue in active ministry with the Assemblies of God may delay the RMD until the date of actual retirement from ministry. Download the Delay of RMD form to see if you qualify.
A 25% federal excise tax penalty will apply for failure to take an RMD after age 73, except when continuing active ministry with the Assemblies of God. If the distribution is corrected within 2 years, this penalty may be reduced to 10%. Contact your tax advisor about your specific situation.
For more information regarding Required Minimum Distributions, contact us at email@example.com or 1.800.622.7526.