Notice on RMDs and direct deposit withdrawal requests

Please note the following procedures for processing Required Minimum Distributions and one-time distribution/withdrawal requests:

RMDs

CRA’s recordkeeper will pay out 2019 RMDs for eligible participants, beneficiaries and alternate payees by year-end. IRS withholdings will be defaulted to 10% and any applicable state tax will be withheld.

If a participant was eligible for an RMD for the first time in 2019 but does not elect to take it this year, their 2019 RMD will be deferred and processed by April 1, 2020. These participants will be required to take another RMD by December 31, 2020. As a result, their first-year (2019) and second year (2020) RMDs will be paid within the 2020 tax year. If a participant fails to timely take an RMD, the participant may be subject to a 50% penalty.

If an eligible participant would like to take their first year RMD in 2019, they must contact CRA’s recordkeeper at 800.352.0313.

One-time distribution/withdrawal requests

Effective next month, CRA and our recordkeeper will no longer accept voided checks with a notarized form for one-time distribution/withdrawal requests paid through direct deposit. Participants must add their bank information to their account at least 15 days prior to requesting the withdrawal. This can be completed via the employee account portal, accessed through cra-online.org, or by calling 800.352.0313.

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Office Closure Notice

Colorado Retirement Association will be closed from 3 p.m. MT on Friday, Feb. 14, through Monday, Feb. 17, in observance of President’s Day.

Given the financial markets also will be closed for President’s Day, CRA’s recordkeeper will be closed on Feb. 17 with the exception of the service center, which will be open from 7 a.m. to 5 p.m. MT and can be reached at 800.352.0313.

Transactions requested after market close on Friday, Feb. 14, will be initiated on Tuesday, Feb. 18. CRA’s offices will reopen for standard business hours on Feb. 18.

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