Required Minimum Distribution Rules for Defined Contribution Plans

Summary

This practice note discusses the rules under I.R.C. § 401(a)(9) for required minimum distributions (RMDs) that must be made to participants or their beneficiaries from defined contribution qualified retirement plans, such as 401(k) plans, tax-sheltered annuity plans under I.R.C. § 403(b) (403(b) plans), individual retirement accounts, and eligible deferred compensation plans under I.R.C. § 457(b) (457(b) plans). See Required Minimum Distribution Rules for Defined Benefit Plans for application of the RMD rules to traditional defined-benefit pension plans and individual retirement annuities. An understanding of RMDs is important for employee benefits practitioners to help their clients who sponsor such retirement plans comply with the applicable requirements. This practice note also addresses the consequences of, and how to correct, RMD violations. This practice note covers the RMD final regulations issued in 2024 (89 Fed. Reg. 58,886 (July 19, 2024), which among other things implement ...