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[February 2, 2009]
A new federal law suspends for 2009 the Internal Revenue Service regulation governing Minimum Required Distributions (MRDs) from certain retirement accounts, including accounts in UC's 403(b) Plan, 457(b) Plan, and DC Plan.
Normally, participants must begin receiving MRDs by April 1 of the calendar year following the year they reach age 70 1/2 or the year they leave UC employment,* whichever is later. Once MRDs begin, they generally must continue annually until the entire plan balance has been paid out.
If you would normally be required to receive 2009 MRDs from your 403(b), 457(b) and/or DC Plan accounts, here s how the new law will affect you:
If you have not begun receiving MRDs: You will not be required to take your 2009 MRD. You will, however, be required to take your 2010 MRD by December 31, 2010; you will not be allowed to defer it until April 1, 2011.
Please note: The new law does not affect 2008 MRDs. If you were required to begin receiving MRDs in 2008 but chose to defer your 2008 MRD until 2009, you must receive it by April 1, 2009. Unless you make other arrangements with Fidelity Retirement Services by March 20, 2009, your 2008 MRD will be sent to your address of record at the end of March.
If you have begun receiving MRDs: You will not be required to take an MRD for 2009. Note, however, that if you have established a "systematic withdrawal plan" (or "SWP") at Fidelity to satisfy your MRD, your withdrawal will be processed as normal unless you call Fidelity to cancel it for 2009.
If you have any questions about your MRD, please call Fidelity Retirement Services at 1-866-682-7787. Retirement Services Specialists are available Monday through Friday from 5:00 am to 9:00 pm PT to assist you.
*For purposes of determining eligibility for MRD, "UC employment" means employment for which you receive UC compensation as evidenced by mandatory contributions to the DC Plan.