Required Minimum Distribution Age Change

In compliance with the 2023 Consolidated Appropriations Act, NRECA has completed the system updates that change the age individuals (who are no longer working) are required to take minimum distributions from their retirement accounts to age 73.

Retirement plan participants who are no longer working and turn age 72 in 2023 are subject to the new rule and must take their first required minimum distribution in 2024. Or they may delay it until April 1, 2025.

Individuals who turned 72 prior to 2023, and terminate employment in 2023, are subject to the previous rules and would need to take their initial distribution in 2023 (or delay it until April 1, 2024).

NRECA notifies individuals who are eligible to take a required distribution in the fall annually and provides the amount they must take to satisfy the requirement. If the impacted participant does not initiate a withdrawal, NRECA will process the distribution before the end of the year so the participant is not penalized.

If you or your retirement plan participants have questions about this change, please contact NRECA’s Member Contact Center at 866.673.2299. Participants with questions about how required minimum distributions impact their retirement planning should reach out to a member of the Personal Investment & Retirement Consulting (PIRC) team at 866.673.2299, option 6 or via email at pirc@nreca.coop.