I am retired and left my annuity savings account with the Indiana Public Retirement System at the time I retired. Do I have to take a distribution of my account once I reach age 70 ½?
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.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.