Required Minimum Distributions (RMDs)
The IRS requires you to start taking a minimum amount from your qualified retirement accounts each year after you turn age 70½ to ensure the money you've saved is used for what it was intended to do – fund your retirement.
Keep in mind:
- If you have a retirement plan with another financial institution, you can exercise all or part of your RMD with them.
- If you take out less than the required amount, you may be subject to a 50% IRS penalty on the undistributed portion.
Download an RMD distribution request form (PDF, 787K) now.
Your RMD is Calculated Like This:
Previous year-end account value1 Life expectancy factor
Adjustments may have to be made if you completed a transfer, rollover or recharacterized a contribution or conversion in the previous year.
To learn more about your retirement options, contact a Thrivent Financial representative. Or locate one here.
1 Variable annuity contracts use the actuarial year-end contract value, which may include living and death benefits, when determining the RMD amount.
What If ... I Don't Need the Income?
Your Thrivent Financial representative can explain options for your distributions, including annuities, life insurance, mutual funds, charitable giving or helping to ensure your legacy lives on with an inherited IRA.
To learn more, contact a Thrivent Financial representative. Or locate one here.
How Will Your Money Be Taxed?
Your RMDs are typically taxed as ordinary income in the years you receive them.
And, unless you specify otherwise on your election form, 10% of your distribution will be automatically withheld as prepayment of federal income tax. (State withholding may also apply, depending on the product(s) you own and the state where you live.)
To learn more about your RMD contact a Thrivent Financial representative. Or locate one here.
Where to Get Help
Your Thrivent Financial representative can help calculate your RMD and explain distribution options and options for reinvestment.
To learn more, contact your Thrivent Financial representative. Or, if you don't have one, locate one here.
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