The following are recent changes regarding the Required Minimum Distribution (RMD) provision of the Vermont Deferred Compensation Plan (the 457 Plan):
· Under the Federal CARES Act signed in late March 2020, the normal Required Minimum Distributions (RMDs) are suspended for 2020, due to market volatility. Prudential has suspended RMDs for the balance of 2020. If you want (or need) the required minimum distributions for 2020, you will need to contact Prudential. If instead, you are receiving a periodic withdrawal (i.e., monthly, quarterly, etc.), you may voluntarily suspend your withdrawals for the remainder of the calendar 2020 year if you wish, but you must contact Prudential to do so; otherwise they will continue. More information on this can be obtained from Prudential's Customer Service line at: 1-877-738-8376.
· Under the Federal SECURE Act signed in late December 2019, the age for a required minimum distribution from all financial instruments for which RMDs are applicable, has been permanently changed from age 70.5 to age 72, for those who were born after July 1, 1949. Information on this can be obtained on the IRS website: irs.gov/rmd and the Fact sheet FS-2020-4.
· Please note that VRSEA has no further information about these changes. Questions should be directed to Prudential at 1-877-738-8376.