Retirement Account RMDs

Beginning in the year you reach age 70½ you must take withdrawals, or required minimum distributions (RMDs), from your retirement accounts or be subject to a 50% penalty tax. Exceptions generally include:

  • Roth IRAs*
  • Your very first RMD, which you can delay until April 1 of the following year, but which would require you to take two RMDs that year
  • Retirement plans sponsored by your current employer, for which RMDs can be delayed until the year you separate from service

RMDs are taxable, except to the extent they represent after-tax or non-deductible contributions, and cannot be rolled over to another retirement account.

Understanding and planning for RMDs can help you manage a key retirement expense.

RMDs and Your ICMA-RC Retirement Accounts

Step 1 - We Notify You Each Year

Your RMD is calculated and must be withdrawn separately for each of your 401 or 457 plan accounts. If you are a participant over age 70 and we have been notified by your employer that you have separated from service, you will automatically receive a letter from us each year notifying you about your RMD amount and options. For IRA accounts, other than Roth IRAs, you will receive a notification automatically.

Step 2- Receiving Your RMDs

You can withdraw your entire RMD in one payment, take partial payments throughout the year or periodic installment payments, or any combination of the above. You can always withdraw more than the RMD amount during the year, but not less.

To request a withdrawal online, if your employer has made it available, log in to your account and select "Withdraw Funds" from the left-hand menu. If online withdrawals are not available, you may complete and send via fax or mail a Withdrawal Form:

  • select the "Resources" tab
  • select the "View/Request Forms" menu option
  • click the (+) beside the "Roll/Disburse" category to view/print the appropriate documents.

You may also obtain a Form or get further assistance by selecting the "Contact Us" option from any page within Account Access or by calling us at 800-669-7400.

Step 3 - Receiving Your RMDs in the Absence of a Withdrawal Form

If you do not submit a withdrawal form, we will automatically disburse the appropriate RMD payment to you in the form of a lump-sum check payment. We do this to help you avoid the penalty tax for failing to withdraw the appropriate RMD payment.

When your RMD is automatically disbursed, you cannot adjust your tax withholding or have the payment deposited directly into your bank account.

We do not automatically distribute IRA assets since IRS rules allow individuals who have more than one IRA account to withdraw their total IRA-associated RMD from just one account.

* Exception: Roth IRA assets in Inherited IRA accounts

Helpful Links

Learn more about planning for and managing RMDs

RMD ChecklistRMD Steps

Get more retirement questions answered at our Retirement Education Center.


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