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Administrative information on required minimum distributions (RMDs)

Frequently Asked Questions

If plan participants have questions about taking RMDs, loans or withdrawals, remember to remind them that it’s best to speak with their financial advisor and/or tax consultant before making any decisions.
No. The waiver of required minimum distributions does not apply to defined benefit pension plans.

No, plan sponsors do not need to decide whether or not to allow participants to suspend RMDs.
 
  • The provision automatically applies to all 401(a), 403(a), 403(b) and governmental 457(b) plans and IRAs.
  • Participants in these plans previously scheduled to receive RMDs can request that the distribution be canceled for 2020, with recurring payments restarted in 2021. They also have the option to repay payments received.
  • Under the act, TIAA cannot process new 2020 RMD payments, but if participants need or want the money, they may be able to take a cash withdrawal, subject to their plan's rules, by logging in to their account on TIAA.org, clicking on ‘Actions’ and then selecting ‘Start a Loan/Withdrawal.’

Yes. If participants need or want the money, they can continue to receive payments of their RMD amounts, although technically these payments will not be classified as RMDs. If RMDs have not started, the most efficient way to receive funds is by taking a cash withdrawal per their plan’s rules by logging in to their account on TIAA.org, clicking on ‘Actions’ and then selecting ‘Start a Loan/Withdrawal.’ IRS Notice 2020-50 confirms that distributions otherwise permitted under the terms of a plan may be treated by the participant as coronavirus-related distributions.

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