Required Minimum Payment Rules

Federal tax law and the terms of the Boston University Retirement Plan and the Supplemental Retirement and Savings Plan require you to start taking Required Minimum Distributions (RMDs) from your 403(b) plan account(s) no later than April 1st following the year in which you turn 73 or terminate employment with Boston University, whichever is later.

Under this requirement, if you have multiple 403(b) accounts, you may calculate your required minimum distribution for each 403(b) accounts, total the amounts, and take the total required minimum distribution from any one or more of your 403(b) accounts.

If you do not receive or start your payments on time or if the payments are less than the required minimum amount, you will have to pay a federal tax penalty of 50% of the amount that was required to be distributed but was not distributed (unless you show reasonable cause to the Internal Revenue Service).