Based on the data in Empower records, Empower will determine the RMD eligible employees and determine the Required Amount to be distributed based on the prior year balances (Per IRS Guidelines).
If the participant has taken distributions throughout the year and enough to satisfy their RMD amount, then Empower will not take any further action. The exception to this is if the participant has a recurring RMD payment scheduled with Empower. In this case, Empower will pay the RMD, not taking into account any other distributions taken.
If the participant has not taken enough to satisfy the RMD amount, then Empower will send a letter in July/August of action required before a particular date.
If no action is taken, Empower will process the RMD and send to the participant, withholding the required standard taxes.
Empower does not automatically update the amount and send an RMD in the event the participant has satisfied their RMD amount through other sources.
Remember, if the participant has a recurring RMD payment scheduled with Empower, Empower will pay the total RMD amount, not taking into account any other distributions taken. For this reason, if you do not plan to withdraw any more than your RMD amount in a year, completing the RMD form for a recurring payment may make sense. If you will likely withdraw more than your RMD amount in a year, we recommend not completing the RMD form.