35 IAC 14-7-7 Required minimum distribution procedure

Sec. 7. (a) Distribution of each member's entire interest must begin by April 1 of the calendar year following the later of the year in which the member: (1) attains seventy and one-half (70 1/2) years of age if the member turns seventy and one-half (70 1/2) on or before December 31, 2019; (2) attains seventy-two (72) years of age if the member turns seventy and one-half (70 1/2) on or after January 1, 2020; or (3) retires (the required beginning date). (b) If a nonvested member or a retired member who deferred withdrawal of his or her ASA reaches the required beginning date without taking an ASA distribution, he or she will be subject to a mandatory lump-sum distribution of his or her account less any monies owed for taxes or penalties, or both. (c) If a vested member has not started receiving his or her monthly pension benefit by the required beginning date, the member's account will be automatically processed utilizing the five (5) year guarantee as described in IC 5-10.2-4-7(b) and annuitizing any available ASA monies. (d) TRF will attempt to notify members of a potential required minimum distribution prior to the member's required beginning date if TRF is able to locate a current valid address for the member utilizing an existing locator service. If TRF is unable to locate a current valid address for a member who has not taken a distribution from the member's pension or ASA, or both, by the required beginning date, no such distribution shall be made until the member is located. Once a valid address is located, distributions will proceed as set forth in subsections (b) and (c), less any withholdings or penalties owed.