Required Minimum Distribution (RMD) Information
The Internal Revenue Service (IRS) generally requires that a member with an interest in a retirement benefit must take a Required Minimum Distribution (RMD) from that benefit. This must be done by April 1 of the calendar year following the year in which you attain 70½ years of age, or by April 1 following the year in which you retire, whichever is later.
If you’re still working in a covered position, or for a PERF or TRF-sponsored employer through Dec. 31, you’re not required to take an RMD. When you leave employment, you will be required to take an RMD. If you do not take an RMD, you may be fined by the IRS due to a late distribution. The amount could be up to 50 percent.
Visit the IRS website for a list of frequently asked questions (FAQs) on RMDs.
Three separate circumstances may require a member to take an RMD. Each circumstance requires a different application process.
1) You must complete the PERF/TRF RMD Retirement Application if:
- you have at least 10 years of creditable service and are no longer working in a covered position,
- you have not begun your retirement benefit, and
- you will be age 70½ by Dec. 31.
2) You must request a distribution of your PERF or TRF Annuity Savings Account (ASA) if:
- you have less than 10 years of creditable service and are no longer working in a covered position, or with a PERF or TRF-sponsored employer, and otherwise not eligible to receive a pension and you will be age 70½ by Dec. 31, or if
- your deceased spouse would have been age 70½ by Dec. 31, and did not take a distribution from his or her ASA and you are the beneficiary.
- You can request an ASA distribution from our Customer Service Center by calling (888) 286-3544. Complete the application and mail it back to us.
You may also request a distribution package online:
- Log in to your account here,
- Click on "Actions" and "Request a Final Distribution" to have a package mailed to you.
3) You must request a distribution of your ASA using the post-retirement ASA distribution election form, here, if:
- you deferred receipt of your Annuity Savings Account (ASA) at retirement and will be age 70½ by Dec. 31.
INPRS will need to receive your application by Jan. 16. If your application is not received by this date, and you will be age 70½ by Dec. 31, you will be subject to a mandatory distribution of any retirement and/or ASA funds to which you are entitled. The distribution cannot be reversed once it is processed. The distribution may result in significant taxable income in the year it is distributed.
If you have reached age 70½ before submitting the PERF/TRF RMD Retirement Application or requesting an ASA distribution, failure to comply with RMD requirements may result in interest and penalties from the IRS. See 35 IAC 13-1-1 for more details on the RMD process.
If you plan to withdraw (e.g., rollover, lump sum) your ASA account in the calendar year in which you reach age 70½ you may be subject to a required minimum distribution and federal income tax. Please consult your financial advisor before taking action.
Call our Customer Service Center with your concerns toll-free at (888) 286-3544. Business hours are Monday through Friday from 8 a.m. to 8 p.m. EST, or e-mail questions to email@example.com.