Required Minimum Distribution (RMD)

At age 70 ½ and every year thereafter, the Internal Revenue Service (IRS) requires you to withdraw at least some of your savings from your MNDCP account. This mandatory withdrawal is called a Required Minimum Distribution (RMD). RMD's are subject to ordinary income tax.

Calculate your RMD 
The RMD amount is determined by IRS regulations and is calculated by dividing your account balance as of the prior calendar year-end by your life expectancy, so it changes each year. The calculations are similar to those that apply to IRA accounts but RMD's must be taken independently from other retirement plans, including IRAs. You may withdraw amounts greater than the minimum, but are not required to do so. Each fall, we will calculate your RMD and mail your information and options.

Your First RMD
You have the option to delay your first RMD until April 1 of the following year. If you delay, you are required to receive two payments in the same year. Since RMDs are taxed as income, receiving two payments in the same year could result in a higher tax liability.

Working Beyond Age 70½
You may postpone taking RMD payments from your account, regardless of your age, as long as you are still employed by the state or a participating employer. If you work past age 70½, you must begin payments of your account by April 1 of the calendar year following the calendar year in which you retire.


Request an RMD
To request the necessary forms for selecting your payment and method or to change a previous election, Contact Us.