2022 Year-End Reminders
1099-R Tax Forms
If you withdrew money from your account in 2022, your 1099-R tax form(s) will be available in your account by the fourth week of January 2023 and mailed no later than January 31, 2023. This form will indicate how much money you withdrew from your account during the 2022 tax year, what portion of that amount is taxable, and any federal or state taxes already withheld from those withdrawals.
2022 Required Minimum Distributions (RMDs)
The IRS requires that qualified savers take mandatory withdraws from their retirement savings accounts each year. These withdraws are known as required minimum distributions (RMDs). The Secure 2.0 Act, which was signed into law December 29, 2022, increased the age to begin taking RMDs from 72 to 73 as of January 1, 2023. Here are a few things to keep in mind regarding your current or future RMD:
- If you turned age 72 in 2022 or earlier, you will need to continue taking RMDs as scheduled.
- If you're turning age 72 in 2023 and have already scheduled your withdrawal, you can postpone your first RMD until you turn age 73.
If you meet the age and employment status requirements, the MO Deferred Comp Plan will review your accounts each year to ensure that you are withdrawing the minimum amount required by law. If you have not withdrawn enough to satisfy the RMD, the difference will be paid to you by December 31st. If 2022 was the first year you were required to receive a distribution, you will be sent an RMD in March of 2023.
If you are receiving periodic payments, that payment schedule will continue unchanged. However, if you setup an RMD-only schedule and your payments do not equal the RMD amount, deferred comp will adjust the payment amount(s) so that the RMD is satisfied. This adjustment will take place each January or at the time you establish an RMD-only schedule. You can establish periodic payments at any time, though you are not required to do so. Your account will be reviewed annually to ensure compliance with the regulations and any remaining RMD will be distributed automatically.