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How do I process a Required Minimum Distribution (RMD)?

Any participant who has attained age 70 ½ and is terminated or is considered a 5% owner is required to take minimum distributions each year. A 5% owner is defined as an employee who owns more than 5% of the employer at any time in the determination year or in the lookback year. The initial minimum distribution must be completed prior to April 1st of the year following attainment of age 70 ½, and subsequent distributions must be completed by December 31st each year thereafter.


  • Sentinel will identify participants who require an RMD.
  • Sentinel calculates the amount and in the participant’s initial RMD year will mail or email a hard copy RMD form. Address locating services are available if needed.
  • Participant provides instructions (banking information and withholding options) that will be used the first year and for all subsequent RMDs thereafter.
  • After the initial year, you will receive a summary report identifying all subsequent RMD eligible participants along with their respective mandatory amounts. You will sign and return forms to Sentinel to authorize the processing of the RMDs (This function is 3(16) eligible).
  • Sentinel processes all subsequent RMDs using initial instructions unless the participant contacts the Service Center with payment changes.
  • Upon approval, Sentinel will process the distribution. The Plan’s paying agent issues payment to the participant, remitting federal/state withholding and preparing Form 1099-R.