2021 Year-End Reminders
1099-R Tax Forms
The 1099-R tax form(s), for participants who withdrew money from the deferred compensation plan in 2021, will be available in their online account by the fourth week of January 2022. The forms will also be mailed no later than January 31, 2022. This form will indicate how much money you withdrew from your account during the 2021 tax year, what portion of that amount is taxable, and any federal or state taxes already withheld from those withdrawals. For additional updates on the status of the 1099-R tax forms, log in to Account Access.
2021 Required Minimum Distributions (RMDs)
Tax laws require annual withdrawals, known as Required Minimum Distributions (RMDs), from retirement accounts in the year a participant reaches age 72, or when he or she retires, whichever is later. The MO Deferred Comp Plan reviews participant accounts each year to ensure that they are withdrawing the minimum amount required by law. If a participant had not withdrawn enough to satisfy the RMD, the difference is paid by December 31st . If 2021 was the first year a participant was required to receive a distribution, he or she will be sent an RMD in March of 2022.
For those receiving periodic payments, that payment schedule will continue unchanged. However, if the requested payments equal the RMD amount, deferred comp will adjust the payment amount(s) so that the RMD is satisfied. This adjustment will take place each January or at the time a participant establishes an RMD-only schedule.
Participants can establish periodic payments at any time, though they are not required to do so. Each participant’s account will be reviewed annually to ensure compliance with the regulations and any remaining RMD will be distributed automatically.