RMD Communication to Plan Participants and Beneficiaries
Education on RMD regulations and requirements
This service campaign is designed to be educational and timely, reminding participants or beneficiaries of inherited retirement plan assets of upcoming Required Minimum Distribution (RMD) or full payout deadlines.
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Eligibility and who will receive these communications |
Those who will receive this communication are:
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Timing |
Varies by communication (see below). |
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Frequently asked questions: |
If a participant is still working, do they need to take an RMD? If the participant continues working past age 73, they may delay taking RMDs from their workplace savings plan, such as a 401(k), 403(b), or small-business account, provided:
What if a participant has a Systematic Withdrawal Plan (SWP)? If a participant has a SWP on file for an RMD, they will be excluded from the annual communication.
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First-time RMD |
For participants turning 73, this communication provides details about taking their first RMD. Messages varies depending on whether the participant's plan offers the auto-generated service or the non-auto-generated service. Sample Auto-Gen: The plan uses the automatic-generated service
Timing: Runs weekly |
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Repeat RMD |
Communication sent to participants who previously received a RMD and have not established a systematic withdrawal for future RMDs. Sample Auto-Gen
Timing: Runs annually (typically Q3) |
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Netbenefits article |
Review RMD Frequently Asked Questions. |
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Beneficiaries of plans not subject to 5- or 10-year rule |
This communication is sent to beneficiaries whose plans do not follow a 5- or 10-year scheduled full payout and require a Systematic Withdrawal Plan (SWP) on file. The final payment is issued approximately 60 days before the required distribution. Sample Plan-required full distribution Timing: Runs monthly |