Participants in the Nazarene 403(b) Retirement Savings Plan should be aware of IRS rules about Minimum Required Distributions (MRD). Once a participant reaches 70½ or retires—whichever comes later—he or she must begin receiving funds from their 403(b) account.

It is important for participants to determine if they are required to make a withdrawal of funds from their Nazarene 403(b) account. Failure to do so by the applicable deadline results in an IRS tax of 50% of the amount not withdrawn.

The first year’s distribution may be delayed until April 1 of the following year; however, a required distribution must be taken by December 31 for each calendar year after reaching 70½ (or retirement). This means participants who turned 70½ in 2017 have until April 1, 2018, to take their 2017 distribution, and until December 31, 2018, to take their 2018 distribution.

Those who determine that a minimum required distribution should be made, may complete this form and return it to the Pensions and Benefits USA office by December 1, 2017. More resources include frequently asked questions and a calculator. Also, if desired, Fidelity Investments will automatically calculate and send participants the required amount monthly, quarterly, or annually.

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