2015 Year-End Reminders
1099-R Tax Forms & Required Minimum Distributions (RMDs)
1099-R Tax Forms
The 1099-R tax form(s), for participants who withdrew money from the deferred compensation plan in 2015, will be available online by the fourth week of January 2016. The forms will also be mailed no later than January 31, 2016. This form will indicate how much money you withdrew from your account during the 2015 tax year, what portion of that amount is taxable, and any federal or state taxes already withheld from those distributions. For additional updates on the status of the 1099-R tax forms, log on to Account Access..
Required Minimum Distributions (RMDs)
Tax laws require annual withdrawals, known as Required Minimum Distributions (RMDs), from retirement accounts in the year a participant reaches age 70½, or when he or she retires, whichever is later. The State of Missouri Deferred Compensation Plan reviews participant accounts each year to ensure that they are withdrawing the minimum amount required by law. If a participant had not withdrawn enough to satisfy the RMD, the difference was paid by December 31, 2015. If that was the first year a participant was required to receive a distribution, he or she will be sent an RMD in March of this year (2016).
For those receiving periodic payments, that payment schedule will continue unchanged. However, if the requested payments equal the RMD amount, the State of Missouri Deferred Compensation Plan will adjust the payment amount(s) so that the RMD is satisfied. This adjustment will take place each January or at the time a participant establishes an RMD-only schedule.
Participants can establish periodic payments at any time, though they are not required to do so. Each participant’s account will be reviewed annually to ensure compliance with the regulations and any remaining RMD will be distributed automatically.