Wisconsin deferred compensation program required minimun distribution
Dear Terry,
I enjoy and listen to your Wednesday show on WGN on a regular basis.
I appreciate and agree with your financial advise. I live in Wisconsin.
Since Illinois is next door to Wisconsin, with probably lots of listeners to your show, I wanted to make a point on Wisconsin’s Deferred Compensation (WDC) Program. It is an optional supplemental program for state workers in the WI Retirement System.
I am in the plan and have learned that WDC requires each year, the full distribution
of one’s required minimum distribution come from WDC funds.
The general rule of being able to take some/all of your required minimum distribution from other IRAs does not apply to WDC. The full amount must be taken from WDC funds.
Again, I enjoy and thank you for your show and advice.
Terry Says
Good point. I have often said that it “doesnt matter” which IRA you take your RMD from — or if you take from several.
But I have also clearly pointed out that if you still have a 40l(k) or 403(b) plan, you must take a separate distribution from it, based on the assets in the plan. And although I didn’t know about the rules of the Wisc Deferred Comp plan, it certainly makes sense that — like other company benefit plans– it would require its own separate RMD.
Thanks for listening, and writing in to make that point.
