Required Minimum Distributions

Internal Revenue Code 401(a)(9) requires you to begin receiving benefits before April 1 of the year following the calendar yearClosed Twelve calendar months commencing on January 1 and ending on December 31. in which you reach age 70½ (if born before July 1, 1949), age 72 (if born after June 30, 1949), or age 73 (if born after December 31, 1950).

Lump-sum benefits

If you become subject to the required minimum distribution rules and elect any lump-sum option, at least a portion of your benefit is your required minimum distribution and cannot be rolled over.

Monthly benefits

If you elect a lifetime annuity (Option 1, Option 2, Option 2A, Option 3, Option 3A, Refund Annuity, or 15-Year Certain Option), the required minimum distribution rules apply regardless of your age. If you elect Option 2 or Option 2A (100 percent survivor benefit options) and name a non-spouse beneficiary who is more than 10 years younger than you, your benefit may be adjusted.

Death Benefits

If you are a spouse beneficiary of a deceased member and elect an annuity option, you may delay receiving your benefits until the member would have been 70½. Should you elect to receive benefits in a lump sum, you must receive the benefit by December 31 of the fifth calendar year after the year of death.

If you are a non-spouse beneficiary of a deceased member and elect an annuity option, you must begin receiving your benefit by December 31 of the calendar year following the year of death. Should you elect to receive benefits in a lump sum, you must receive the benefit by December 31 of the fifth calendar year after the year of death.

Additional Restrictions

In addition, there are restrictions on benefit option changes and beneficiary changes under the required minimum distribution rules. PERS will provide you with additional information if and when these rules are applicable to you or your beneficiary.

 

Related topic:

Rollover of Benefits