Benefits Handbook

A Required Minimum Distribution ("RMD") is a minimum annual distribution from the Plan. In general, the Internal Revenue Code requires that retired or terminated participants that attain age 73 (if you were born after December 31, 1950) or age 72 (if you were born after June 30, 1949 but before January 1, 1951) or age 70-1/2 (if you were born before July 1, 1949) must receive an RMD from the Plan each year. The first RMD must be received no later than the April 1st following the calendar year in which you attain age 73 (if you were born after December 31, 1950) or age 72 (if you were born after June 30, 1949 but before January 1, 1951) or age 70-1/2 (if you were born before July 1, 1949) or if later, the calendar year following your Retirement or termination of employment.

If you do not elect a distribution before the time at which RMDs are required, Alight will send you a minimum distribution notice informing you of the RMD that must be taken for the year. If you have not satisfied this RMD amount by other Plan payments during the year, you will automatically be sent an RMD check in mid-December. During the period in which you are receiving RMDs, you will have the option to elect a distribution under any of the options generally available to participants under the Plan.

Special Rule for Roth Account Balances: If you are a participant, effective beginning with the 2024 calendar year, your Roth account balances (Roth 401(k), Roth catchup, in plan Roth conversion and Roth rollover contributions, including earnings) are not subject to IRS RMD rules. In addition, these amounts are no longer required to be distributed under the Plan's distribution rules; therefore, you have the option to keep these amounts in the Plan for your lifetime. This special rule applies only to Plan participants, not beneficiaries.