Are You Nearing Age 70?

November 30, 2016

Couple hugging on white background.The IRS imposes a penalty if you don’t either refund your account or begin taking a monthly benefit by April 1 of the year following the year in which you turn age 70½ or end Colorado PERA-covered employment, whichever is later. 

If you don’t take these Required Minimum Distributions, the IRS will impose a 50 percent tax on the money you should have withdrawn, but did not. The penalty is in addition to regular income taxes. 

PERA will notify you about your distribution options around your 70th birthday, but you should contact PERA if you have not received information and think you should have.

 

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