Mandatory Distributions After Age 70 1/2 (MSRB)

If you leave state service, but remain a member, you must take mandatory distributions.

Overview

If you leave state service but remain a member of the MSERS, federal and state laws require you take a mandatory minimum distribution of your retirement account when you turn age 70 1/2 if you are not collecting a retirement benefit and are not employed under the MSERS. Your options are to 1) start collecting your pension, if eligible; 2) withdraw your contributions; or 3) roll your funds over to a qualified retirement account and have the account administrator handle your minimum distributions going forward. If you choose a rollover, a portion of your funds are considered a required minimum distribution and must be paid directly to you.

You may be liable for a federal tax penalty of up to 50% of the amount of your required distribution if you fail to take your distribution. We recommend you contact the Board if you have any questions regarding this law.

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