Internal Revenue Code requires you to begin receiving benefits by April 1 of the year following the calendar year in which you stop working or reach age 70½, whichever is later. The required minimum distribution (RMD) is the minimum dollar amount allowed by federal law for a calendar year. OSGP uses your account balance as of the December 31 of the prior year divided by a uniform lifetime factor to calculate your RMD.
If you are still currently employed but age 70½ or older, you may choose to defer your distribution until you retire or request funds from your account.
An audit is done around October of each year for anyone 70½ or older to make sure the RMD has been met for that year. If you have not met the RMD, OSGP will issue an additional check for the balance of the RMD amount.
If you become subject to the required minimum distribution rules and receive any lump-sum amount, at least a portion of your benefit is your required minimum distribution and cannot be rolled over.
If you elect installment payments and you become subject to the required minimum distribution rules, you must ensure your installment amount covers your required minimum distribution.
If you are a spouse beneficiary
of a deceased participant, you may delay receiving your benefits until the participant would have been 70½.