Retirement brochure
Retirement brochurePRINT THIS PAGE|EMAIL THIS PAGE
Questions and answers
403(b)
What is a required minimum distribution?
The Internal Revenue Service (IRS) requires you to start withdrawing money from your before-tax 403(b) account at the later of age 73 (effective January 1, 2023) or the calendar year you retire from an employer through which you contributed. These withdrawals are called required minimum distributions (RMDs). Historical note: Roth 403(b) deferrals used to be included.
Your minimum distribution is a function of your account balance and your life expectancy.
How is my RMD calculated?
Member Benefits will assist you in calculating your RMD. Each year we will notify you of the requirement to withdraw. Here’s how to calculate your RMD:
Take the prior year-end account balance and divide it by your life expectancy factor for the year of distribution. For most individuals, you are able to use the Uniform Life Expectancy Table I (below) to obtain the life expectancy factor. However, if your beneficiary is your spouse and he/she is more than 10 years younger than you, the IRS allows us to apply a more liberal life expectancy factor. You can call us to obtain this Joint Life & Last Survivor expectancy factor. You can also get it from the IRS by referencing Appendix C, Table III, of Publication 590.
| Uniform Life Expectancy Table* | |||
|---|---|---|---|
| Age | Life Expectancy Factor | Age | Life Expectancy Factor |
| 73 | 26.5 | 83 | 17.7 |
| 74 | 25.5 | 84 | 16.8 |
| 75 | 24.6 | 85 | 16.0 |
| 76 | 23.7 | 86 | 15.2 |
| 77 | 22.9 | 87 | 14.4 |
| 78 | 22.0 | 88 | 13.7 |
| 79 | 21.1 | 89 | 12.9 |
| 80 | 20.2 | 90 | 12.2 |
| 81 | 19.4 | 91 | 11.5 |
| 82 | 18.5 | ||
| *Source: Internal Revenue Service (IRS) | |||
Traditional IRA and SEP IRA
Like the 403(b), these IRA accounts also require RMDs to start at age 73 (effective January 1, 2023). However, unlike the 403(b), you cannot delay the RMD past age 73, even if you continue to work. The calculation is obtained by taking the prior year-end balance divided by your life expectancy factor. As with the 403(b) RMD, the same tables provided by the IRS are used for its calculation.
What should I do when I need to take my first RMD?
In the year you reach age 73 (effective January 1, 2023), Member Benefits will send you an RMD notice. Please contact Member Benefits to assist you in setting up your RMD schedule. This will establish ongoing instructions to process your RMD. After your initial setup, Member Benefits will send you a notice annually reminding you of the RMD. If you wish to change the initial setup instructions, you will need to complete a new 403(b) or Traditional IRA Required Minimum Distributions Setup Instructions form.
You will face up to an IRA penalty of 25% on any undistributed RMDs.
How we do business
Our vision at Member Benefits, “Every Member Financially Secure”, is more than words. It represents the fundamental reason for our existence—to serve Wisconsin public school employees. It also reflects our commitment to helping you achieve your financial dreams.
TSA 2620-280-0223(W)
Effective January 2024. Policies and programs described are subject to change at any time.
Created by educators
Over 50 years ago, we were created by Wisconsin educators for Wisconsin educators. No other financial organization can say this. Explore our unique programs and services.
- Retirement
- Insurance
- Financial Planning
Stay connected with WEA Member Benefits!
Sign Up
© 2024 WEA Member Benefits. All rights reserved.
GENERAL
Not all products and services are available in all states.
The content provided by WEA Member Benefits is for informational purposes only and is not intended to constitute individualized investment, legal, financial, or tax advice. Certain recommendations or guidelines may not be appropriate for everyone. Consult your personal advisor or attorney for advice specific to your unique circ*mstances before taking action.
When providing a testimonial, the individual’s experience is their own and is not a guarantee of future results for all clients. No compensation was provided for this opinion. Individual is a current client of WEA Financial Advisors, Inc. at the time of their statement.
RETIREMENT
The 403(b) retirement program is offered by the WEA TSA Trust. TSA and IRA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA. Check the background of this firm and our investment professionals on FINRA’s BrokerCheck.
Securities offered through WEA Investment Services, Inc, member FINRA.
If you choose to invest in the WEA Tax Sheltered Annuity or WEA Member Benefits IRA program, fees will apply. Consider all expenses before investing.
The Trustee Custodian for the WEA Member Benefits IRA accounts is Newport Trust Company. Certain state residency required.
Keep in mind that mutual fund investments are not guaranteed and may gain or lose value. Past performance is no guarantee for future results. Future performance may be lower or higher than past performance. Before investing in any mutual fund, call WEA Member Benefits at 1-800-279-4030 to request a prospectus. We advise you to read it carefully and consider the fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the investment company.
Target retirement funds invest in a mix of stock and bond funds that steadily become more conservative as they approach their target date. Target retirement funds are not guaranteed and may gain or lose value now and after their target date.
The Trustee Custodian for the Personal Investment Accounts is Mid Atlantic Trust Company. The Personal Investment Account Program is offered by WEA Financial Advisors, Inc., an SEC registered investment advisor.
Interest is compounded daily to produce a yield net of Empower’s administrative fee of 0.60%. Empower Annuity Insurance Company (EAIC) is compensated in connection with this product by deducting an amount for investment expenses and risk from the investment experience of certain assets held in EAIC’s general account. For more information, go to weabenefits.com/empower.
INSURANCE
Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details.
Flood insurance offered through the National Flood Insurance Program and underwritten by Bankers Insurance Company.
The long-term care insurance program is administered by Associates of Clifton Park. Long-term care (LTC) insurance products are underwritten by multiple LTC insurers.
The life insurance program is offered and administered by Associates of Clifton Park. Life insurance products are underwritten by multiple life insurance carriers.
FINANCIAL PLANNING SERVICES
All advisory services are offered through WEA Financial Advisors, Inc., an SEC registered investment advisor. Advisor will develop a financial plan that will recommend an asset allocation and specific funds offered in the WEA TSA Trust 403(b) and WEA Member Benefits IRA programs and generally will not include recommendations to invest in individual securities or bonds, CDs, options, derivatives, annuities, closed-end funds, unit investment trusts, partnerships, or other securities not offered through WEA Member Benefits. These advisory services are provided for a fee. The results of recommendations developed by WEA Financial Advisors, Inc., cannot be guaranteed. There is no guarantee of future performance of an investment portfolio and there is not a guaranteed rate of return. Wisconsin residents only.
SEMINARS
Seminars are free to attend; however, if you choose to invest in the WEA Tax Sheltered Annuity or WEA Member Benefits IRA program, fees will apply. Consider all expenses before investing.
MORE INFORMATION
For a full list of program disclosures, visit weabenefits.com/disclosures.
View privacy information at weabenefits.com/privacy.
