If you're age 73 or older and no longer working for the company sponsoring your retirement plan, you may be required to take a Required Minimum Distribution (RMD). RMDs are minimum taxable amounts the IRS requires you to withdraw each year beginning at age 73, from certain retirement accounts, including 401(k) plans.

Who Needs to Take an RMD?

You are required to take an RMD if:

  • You are age 73 or older, and
  • You are no longer employed by the company sponsoring your 401(k) plan, or
  • You own more than 5% of the company sponsoring the plan, regardless of employment status.

If you're still working and do not own more than 5% of the company, you can generally waive the RMD requirement for your employer's 401(k) plan.

When Do You Need to Take It?

  • You must take your first RMD in the year you turn 73.
  • You can delay your first RMD until April 1st of the following year.
    • Example: If you turn 73 in 2024, your first RMD is due by April 1, 2025.
    • Your second RMD must still be taken by December 31, 2025.
  • After your first RMD, you must take all future RMDs by December 31st of each year.

How to Request Your RMD

To ensure timely processing, submit your RMD request to Ubiquity by:

  • March 1st for the April 1 deadline (first RMD only), or
  • December 1st for the December 31 deadline (all other years).

Steps to Submit an RMD Request:

  1. Log in to your account at MyUbiquity.com
  2. Go to the 401(k) menu on the left-hand side of your dashboard
  3. Select Withdraw/Rollover Out
  4. Click on RMD Request Form
  5. Complete and submit the form

How to View Your RMD Amount

Each year, Ubiquity sends an email notification to participants who may be required to take an RMD. To access your personalized RMD report:

  • Open the email and click the included link
  • The report will show:
    • Whether an RMD is required based on your plan records
    • The amount you must withdraw for the current year

⚠️ Important: Starting in 2024, Roth 401(k) funds are no longer included in the RMD calculation. Only pre-tax funds must be withdrawn to satisfy your RMD. However, Roth funds can be withdrawn voluntarily as an additional distribution.

What Happens If You Don’t Take Your RMD?

If you fail to take your full RMD:

  • The IRS will impose a 25% excise tax on the amount not withdrawn.
  • You must report the shortfall on IRS Form 5329 with your tax return.

If the missed RMD was due to a reasonable error, you may request the IRS to waive the penalty by:

  1. Filing IRS Form 5329
  2. Including a letter of explanation detailing the error and the steps you’ve taken to correct it

What If You Have Multiple Retirement Accounts?

  • 401(k) accounts: You must calculate and take an RMD from each plan separately.
  • 403(b) accounts: You can calculate the total RMD across all accounts and take the full amount from any one (or more) of your 403(b) accounts.
  • IRAs: You must calculate the RMD for each IRA, but you can satisfy the total requirement from one or more IRAs.

Double-Check Your Eligibility

If you believe your age or ownership status is recorded incorrectly, or if you’re still working and think you may qualify for an exemption, notify your plan sponsor immediately. Correcting errors early can prevent unnecessary distributions and IRS penalties.

Need Help?

If you have questions, email us at info@myubiquity.com or chat with us 24/7 by clicking the chat icon after logging into your account at MyUbiquity.com.