2023 Year-End Reminders
1099-R Tax Forms
The 1099-R tax form(s), for participants who withdrew money from the deferred compensation plan in 2023, will be available online by the fourth week of January 2024. The forms will also be mailed no later than January 31, 2024. This form will indicate how much money you withdrew from your account during the 2023 tax year, what portion of that amount is taxable, and any federal or state taxes already withheld from those distributions. Please review the Understanding Your 1099-R Form for additional information regarding your 1099-R.
2023 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 73, or when he or she retires, whichever is later. The MO Deferred Comp 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 If a participant had not withdrawn enough to satisfy the RMD, the difference was paid by December 31, 2023. 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 (2024).
IMPORTANT: Starting in 2024, participants will no longer be required to take RMDs from Roth accounts (except RMDs due by April 1 for those reaching their RMD age in 2023).
For those receiving periodic payments, that payment schedule will continue unchanged. However, if the requested payments 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 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.