What Is an RMD?
RMD or Required Minimum Distribution is an amount of money that is required by the IRS to withdraw annually from employer-sponsored retirement plans such as a 401K, Traditional IRA, Simplified Employee Pension (SEP) IRA, and SIMPLE IRAs.
When Must Distributions Begin?
Under current federal tax regulations, you must begin taking annual RMDs by April 1 of the calendar year following the year you turn age 73. In subsequent years, the annual distribution must be taken by December 31.
How Hingham Calculates Your RMD
Existing Accounts: For all eligible IRAs opened with Hingham Institution for Savings prior to January 1 of the current calendar year, our systems automatically calculate your required annual distribution amount on the second business day of January.
Transfers and Rollovers: If your IRA was transferred or rolled over to Hingham after January 1, our team or the official IRS RMD calculator can assist you in determining that year's required withdrawal based on your prior year-end balance.
Receiving Your Distribution
You have two convenient ways to access your distribution funds:
Automatic Scheduled Disbursements: Set up recurring distributions paid monthly, quarterly, semi-annually, or annually. Automatic payments are issued on the final business day of the month and typically take 1–3 business days to reach your designated checking or savings account.
Branch Disbursements: Visit any Hingham branch location to process a one-time distribution in person with an associate.
Tax Advisory Note: Distribution rules can vary based on individual tax situations and birth years. Please consult your certified tax professional or financial planner regarding specific withholding and tax liability calculations.