Steps to Avoid Year-End RMD Problems, Dec. 21, 2018

Dec. 21, 2018

Required minimum distributions (RMDs) kick in when a plan participant reaches age 701/2, and while RMDs are broadly applicable, they frequently create problems. These problems are magnified when employers fail to educate and enforce RMD requirements, as well as because many employees are managing multiple accounts as they approach retirement. Because penalties for both plan sponsors and participants can be severe, participants, sponsors should provide ample notice of the RMD rules. Further, plans are permitted to implement rules providing that RMDs will automatically be distributed to employees who fail to respond to RMD notices. For more information on the RMD rules, visit Tax Facts on Insurance and Employee Benefits Online and .