Retirement distributions may not be deferred indefinitely. You must begin taking annual “required minimum distributions” (“RMDs”) when you reach age 70 ½. You may take your first RMD by April 1st following the calendar year you attain the age of 70 ½ (the “required beginning date” or “RBD”). Future RMDs must be taken by December 31 of the year in question. Thus, if you wait to take your first distribution until the latest possible time (April 1 of the following year), you will be required to take a double distribution in the second year. To avoid a double RMD, it is advisable to take your first year RMD by December 31 of the year you reach age 70 ½ rather than waiting until April 1 of the following year.

Example: Mary attains 70 1/2 during 2001 and takes her first RMD March 31, 2002. Mary must take her 2002 RMD by December 31, 2002, resulting in a double RMD distribution in 2002.

RMDs are determined by dividing your retirement plan account balance (as of the previous December 31) by the Applicable Devisor from the Uniform Table below that corresponds to your age. If you have more than one IRA, 403(b), 401(k) or qualified plan, all such plans must be aggregated for purposes of meeting the RMD requirement. Required Minimum Distributions are just that, minimums. You may always take more than the minimum. Roth IRAs are exempt from the RMD rules.

Example: On December 31, 2001, Mary has $703,285 in her IRA. She is 73 years old. Her RMD for 2002 is $703,285 -=- 24.7 = $28,473.08

The Uniform Table