Beginning in 2024, required minimum distributions (RMDs) are no longer required from Roth accounts in employer-sponsored retirement plans.
This change affects your Minnesota Deferred Compensation Plan (MNDCP) account.
Why the change?
Legislation enacted in the SECURE 2.0 Act excludes Roth account balances when calculating RMDs. Beginning in 2024, RMD payments will be based on your MNDCP pre-tax account balance only. Any Roth balance will be excluded when calculating and distributing your RMD. This change aligns with the distribution rules already in place for Roth IRAs. (Roth IRAs are exempt from RMDs during the original owner’s lifetime.)
How does this change affect you?
Your MNDCP Roth account balance will be excluded when calculating and distributing your RMD. As a result, the RMD amount paid to you may decrease because it’s based on your pre-tax account balance only.
What action do you need to take?
You do not need to do anything. If you would like to take an additional distribution, you can either initiate the request in your Online Account or contact the MSRS Service Center for a distribution form to be mailed to you.