A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your retirement account each year after age 72. Once you have reached this age, IRS regulations provide that all tax-sheltered retirement plans have an RMD. This rule may be a reason for you to consider rolling over all of these accounts to your 403(b).
Regulations further provide that an employee who continues in active ministry with the Assemblies of God may delay the RMD until the date of actual retirement from ministry.
A 50% federal excise tax penalty will apply for failure to elect an RMD after age 72, except when continuing active ministry with the Assemblies of God.
For more information regarding Required Minimum Distributions, contact us at firstname.lastname@example.org or 1.800.622.7526.