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Required Minimum Distributions (RMD)

Understanding the point at which you have to start taking money from your retirement account

When you reach age 731, the IRS requires that you withdraw a certain amount of money, called a required minimum distribution or RMD, from your retirement accounts each year. If you’re still working for an eligible Reform Movement employer at that time, you can delay taking your RMDs until you retire.

Fidelity will calculate the annual required minimum distribution for your RPB 403(b) account (Roth contributions and Rabbi Trust accounts are not subject to RMDs). You can find out your RMD amount and payment options on Fidelity NetBenefits by logging into the MyRPB for Participants portal or calling Fidelity or RPB. You will pay ordinary income taxes on your RMDs.

If you’re still working for an RPB-eligible employer, you can defer your RMD by completing the RMD Deferral Form each year.

RMD amounts

  • Your RMD is based on your age and your 403(b) account balance as of December 31 of the prior year. If you're married, your spouse’s age is also a factor—as long as you're more than 10 years apart. Learn more about how the required distribution amount is calculated at the IRS website and estimate it using your prior year-end account balance as shown in Fidelity NetBenefits.
  • You can request Fidelity to take your RMD from one or more of the funds that you’re invested in, otherwise the money is taken proportionally from ALL of your funds before year-end.
  • You can always withdraw more than the RMD amount. RPB recommends you don’t take more than 15% of your account balance each year.
  1. With the passage of the SECURE 2.0 Act in December 2022, the RMD age changed from 72 to 73 for individuals born after 12/31/1950.

Important deadlines

  • Once you turn 73, you must withdraw your RMD by December 31 each year.
  • For your first RMD only, Fidelity defers payment until April 1 of the year after you turn 73. You'll also need to take your second RMD in the same tax year. Call Fidelity if you want to take your first RMD the same year you turn 73.
  • If you're 73 and still working, you can defer all or some of your RMD by completing the RPB Deferral Form each year you're working for an eligible Reform Movement Organization.

Penalties and tax considerations

  • If you don’t withdraw the minimum amount, there is a 25% penalty (i.e., an excise tax) on the amount that isn’t withdrawn.
  • RMDs are automatically taken in equal proportions from all of your investments.
  • If you wait until April 1 of the year after you've turned 73 for your first RMD, it will mean taking two RMDs that year—one for the year you turned 73 and one for the subsequent year. We recommend that you speak with your tax advisor to determine if the additional income has tax consequences.

Need to access your retirement savings before retirement?

You may want to consider taking a loan from your 403(b) account.

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