The Required Minimum Distribution (RMD) is something every retiree should be aware of. It is the smallest amount you must withdraw from your Nazarene 403(b) Retirement Savings Plan every year after a certain age, unless you are still working. If you fail to do so, you may face a significant penalty.
With the SECURE 2.0 Act, the age for starting the RMD became 73 for those who are retired and turned that age after 12/31/22. However, for those who are retired and turned 70.5 before 1/1/20, the RMD date remains 70.5. For those who were retired and turned 70.5 from 2020 through 2022, the RMD age remains 72. See the chart below.
| Turning Age | After Date | Before Date | Applicable Age |
| 70.5 | 01/01/2020 | 70.5 | |
| 70.5 | 12/31/2019 | 01/01/2023 | 72 |
| 72 | 12/31/2022 | 01/01/2033 | 73 |
| 74 | 12/31/2032 | 75 |
On the bright side, the penalty for failing to receive your RMD (or not taking enough) has declined from 50% to 25% of the required amount not distributed, but that is still a steep amount and should be avoided if possible.
Fidelity Investments, the recordkeeper of the Nazarene 403(b) Plan, provides an RMD calculator, or they will calculate your RMD for you upon request. You may contact them at 866-629-2736 for assistance, or you may contact Pensions and Benefits USA at 888-888-4656 or pensions@nazarene.org with questions.