RMD: Plan ahead to avoid interest and penalties
If you still have funds in your INPRS defined contribution account, the Internal Revenue Service (IRS) has a distribution requirement for you. Known as the Required Minimum Distribution (RMD), this requirement and is based on your age and employment status.
If you turn 70 ½ after December 31, 2019, you may have to take an RMD by April 1 of the year after you reach age 72 if you are:
Not working in a PERF or TRF covered position;
OR, not working for an employer that contributes to PERF or TRF.
For more details, give us a call at (844) GO-INPRS or (844) 464-6777. If you have tax questions regarding the RMD, please consult with a tax advisor.
Less paper, less hassle
In the coming months, benefit payments to members still receiving paper checks will be transitioned to an INPRS-provided debit card. If you are receiving a paper check, watch your mail for a letter from INPRS followed by a mailed debit card.
If you are currently receiving paper checks and direct deposit to your bank account is your preference, you can make the switch now. Call us at (844) GO-INPRS or (844) 464-6777 and our team will help you start getting your benefits through our easy, secure direct deposit option. View our FAQs here.
13th Checks May Apply to You
There are several INPRS-related legislative changes you may need to know about as a retiree. Some of these changes relate to 13th checks.
The 2019 Senate Enrolled Act 22 applies to PERF and PARF members. If you are a PARF member that has a PERF retirement account, you will still receive a PERF 13th Check. This law sets clarification that the process will continue for 2020.
As a result of the 2019 House Enrolled Act 1001, eligible PERF, TRF and EG&C members will receive their 13th checks no later than October 1, 2020. Depending on your years of creditable service, below indicates your dollar amount for your 13th check.
If a member’s creditable service is
- At least 5 years, but less than 10 years*, the amount is $150.
- At least 10 years, but less than 20 years, the amount is $275.
- At least 20 years, but less than 30 years, the amount is $375 or
- at least 30 years, the amount is $450.
For further details about 13th checks, visit our website here.
The ABCDs of Medicare
At age 65, you become eligible for Medicare. Despite what some people think, Medicare helps pay for some medical expenses, but a portion remains your financial responsibility. For this reason, it is important to consider medical expenses when you are planning for retirement. Understanding the ins and outs of Medicare can be challenging. You can learn the basic ABCDs of Medicare, here.
Introducing INPRS Member Advocate & Employer Advocate Team
We are pleased to re-welcome our Call Center, now known as the Advocate Team, to INPRS. Why the change of name? Here at INPRS, our teams do more than answer your phone calls. Our advocates take pride in educating you on your pension benefits as well as holding the knowledge of the systems’ operations. We ensure that our Advocate Teams possess a natural ability to coordinate with others within the organization so we can provide you with clear and effective communication. Our advocates work hard to ensure the consistency of your plan and protect our funds while keeping your best interest in mind.
Have questions about your retirement account? Call our advocates today at (844) GO-INPRS!
Check your withholding
It is time for you to do a quick “paycheck checkup.” You are encouraged to update your federal income tax withholdings for benefit payments that are not eligible rollover distributions. To help you get a better idea, the IRS released a withholding calculator to help you identify your tax withholding. You can access the withholding calculator here.