Required Minimum Distribution (RMD)
The Internal Revenue Service (IRS) generally requires that a participant in an employer-sponsored retirement plan – including NHRS – must take a Required Minimum Distribution (RMD) from that plan. This must be done by April 1 of the calendar year following the year in which you attain 70 ½ years of age (age 72 in the case of a member who attains age 70½ on or after January 1, 2020) or by April 1 following the year in which you retire, whichever is later.
If you are 70 ½ years of age (age 72 in the case of a member who attains age 70½ on or after January 1, 2020) and still working for an NHRS-participating employer through December 31, you are not required to take an RMD. When you leave employment, you will be required to take an RMD or you may be subject to a 50 percent penalty by the IRS due to a late distribution.
Visit the IRS website at http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Required-Minimum-Distributions for a list of frequently asked questions (FAQs) regarding RMDs.