IMPORTANT NOTICE - Required Minimum Distribution

In 2009 you were allowed to take advantage of the 2009 Tax Year Exception Regarding Required Minimum Distributions (RMD). If you took advantage of this in 2009 you now need to re-establish your RMD for 2010. The Worker, Retiree, and Employer Recovery Act of 2008, which waived the requirement to take a Required Minimum Distribution was only for the 2009 tax year.

The RMD applies to 403(b) Tax Sheltered Retirement Plans, Governmental 457(b) Deferred Compensation Plans and IRA’s. The waiver also applied if you turned 70½ in 2009 and delayed your 2009 required minimum distribution until April 1, 2010. It is important to note that the waiver applies only to Required Minimum Distributions taken to satisfy the 2009 tax year. Distribution for the 2010 calendar year must be taken by December 31, 2010.

Please allow sufficient time to reestablish or submit your RMD request to your contract carrier for the 2010 calendar year.

For those of you that are 70½ and older and still working you are not required to take a minimum distribution from your 403(b) Tax Sheltered Retirement Plan or Governmental 457(b) Deferred Compensation Plan until you separate from service. Minimum distributions from your other retirement plans may be required. Check with your tax advisor.

Should you have any questions, please contact your MEA Financial Services Representative.