RMD Information for 2022
Internal Revenue Service regulations require that, when you reach age 72, you’ll need to withdraw a minimum amount from your retirement plan account. This is called a Required Minimum Distribution or RMD. Once withdrawals have started, they will continue annually until your balance has been withdrawn. The minimum amount to be withdrawn each year is calculated using IRS life expectancy tables.
You are required to make this withdrawal if you meet one of the criteria below.
You have or will reach age 72 by Dec. 31,2022, and you are more than a 5% owner* of the company:
OR
You have or will attain age 72 by Dec. 31, 2022, and you are no longer employed by the company.
You may or may not be required to take the distribution based on your ownership and employment status.
Your will receive a Required Minimum Distribution Form and need to return it no later than Dec. 14, 2022, and return it either by mail in the enclosed envelope, email to [email protected], or by fax to 615-731-0049.
RMDs are not eligible rollover distributions – an RMD must be taken as taxable income to you. Withdrawals will be processed from your pretax account provided the balance is sufficient to cover it. Please contact us for further instructions if you have a Roth balance and would like to withdraw from it instead.
If you do not return the attached Required Minimum Distribution Form by the deadline, we will calculate any required withdrawals using the uniform life expectancy table as regulated by the IRS and impose the mandatory federal withholding rate of 10% based on the information that we have in our records. Failure to return this form may result in either a missed distribution or a payment that was not required. Note that a processing fee may be assessed to process the distribution and prepare Form 1099R. You can call our office at 877.767.7738 if you have any questions.
Special Tax Notice
You can learn more about RMD tax implications in the Special Tax Notice located here: Special Tax Notice.
