TRB: IRS Required Minimum Distribution for Inactive Members

IRS Required Minimum Distribution for Inactive Members

 

The Internal Revenue Service (IRS) requires individuals who will attain age 70 Ĺ during the current calendar year to make a minimum withdrawal (a refund to the member, not a rollover to another qualified plan) from their retirement plan either during the current calendar year or by March 31st of the next calendar year; failure to do so results in a tax on the memberís retirement account.  The Teachersí Retirement Board (TRB), however, does not issue partial refunds and so we will only process a withdrawal for the entire account balance, and will not process a withdrawal for only the required minimum distribution.  A member may choose to roll over their TRB account to another qualified plan such as an IRA and then take the required minimum distribution from that account.



Content Last Modified on 1/8/2014 12:08:37 PM