Church Pension Group | Minimum Required Distribution

Minimum Required Distribution

Beginning April 1 following the calendar year you reach age 72 (other rules may have applied if you turned age 70½ prior to January 1, 2020), you are required to withdraw a minimum amount of money from your tax–advantaged retirement savings accounts each year. This is called a minimum required distribution, or MRD. You are responsible for taking the correct amount every year to avoid stiff tax penalties.

You generally have to take MRDs from any retirement savings plan or account in which you contributed tax–deferred assets or had tax–deferred earnings, such as the Retirement Savings Plan (RSVP) and the traditional IRA accounts offered by Church Life.

You can always take more than the MRD amount. You may wish to reinvest MRDs in annuities or other savings vehicles as a way to make your savings go further.1

1Note: You cannot reinvest MRDs in a tax-advantaged retirement plan or account.

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