Publications and emails target both consumers and plan administrators
With the population aging, First American Bank understands that there's no bigger financial topic than retirement planning. Our consumer-focused Reinventing Retirement newsletter includes articles on everything from rolling over IRAs to reducing expenses. Meanwhile, our Plan Sponsor Outlook publication and regular emails keep plan administrators abreast of legal issues and offer ideas on how to draw more employees into retirement benefit programs.
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However, if you are still working, you are not required to begin RMDs from your employer sponsored plan until April 1 of the year following the year in which you terminate employment. This exception does not apply if you own more than 5% of the employer, nor does it apply to IRAs.
Special Note: For 2020 the CARES Act temporarily suspended the RMD requirements from IRAs and qualified retirement plans provided the employer sponsoring the plan adopts the CARES Act provisions. Check with the sponsor of your retirement plan to confirm if you must take an RMD for 2020.
a. $19,500 for 2021;
b. the maximum deferral amount allowed under the terms of the plan; or
c. the amount that allows the plan to meet the required nondiscrimination tests.
In addition, if you attain age 50 or older by December 31, you may defer an additional $6,500 catch up contribution.