Required Minimum Distributions Fact Sheet

Retirement

Savings

Program

The 403(b), 457(b), and DC Plans

What are required minimum distributions (RMDs)?

Once you reach age 73* and are no longer working at UC, the Internal Revenue

Service (IRS) and UC’s Retirement Savings Program require you to start withdrawing

money from your tax-deferred retirement savings plan(s), such as UC’s 403(b),

457(b) and DC Pre-Tax Plans. These mandatory withdrawals are known as "required

minimum distributions" (or sometimes MRDs — "minimum required distributions").

Required minimum distributions (RMDs) apply to all of UC's plans, and you must

satisfy the requirements for each plan separately. Distributions from one plan do

not satisfy the requirements for another plan, and RMDs are not eligible for rollover

to other tax-deferred accounts. Further, distributions from an Individual Retirement

Account (IRA) or any other non-UC plans that you might have do not satisfy the

requirements for the UC plans.

What are the dates for my first and subsequent RMDs?

Your first RMD must be withdrawn by April 1 of the year following the year you turn

age 73 or leave UC employment (whichever is later).

All subsequent RMDs must be received by December 31 of each year. Once you

begin receiving your RMD, you must continue to receive an RMD each year, even if

you return to work at UC.

What if I don’t take my RMD?

The penalty for not taking your RMD is severe: If you don’t receive a distribution

that satisfies the requirements, you must pay the IRS an additional nondeductible

50% tax on the amount that you should have received.

If you are age 73 or

older and did not work

for UC through the end

of the calendar year,

you are required to

take your RMD.

Required Minimum

Distributions Fact Sheet

* The change in the RMDs age requirement from 72

to 73 applies only to individuals who turn 72 on or

after January 1, 2023. After you reach age 73, the

IRS generally requires you to withdraw an RMD

annually from your tax-advantaged retirement

accounts (excluding Roth IRAs, and Roth accounts

in employer retirement plans accounts after

December 31, 2023). Please speak with your tax

advisor regarding the impact of this change on

future RMDs.

How is my RMD determined?

The amount of your RMD is calculated by dividing your

previous year-end plan balance by an IRS factor based on your

life expectancy. For your calculation each year, the IRS factor

corresponding to your age on your birthday in that year is

applied. For instance, if you turn age 73 in August, the calculation

for your RMD that year will be based on the factor corresponding

to age 73.

RMDs must be calculated using the Uniform Lifetime Table (see

below), unless your sole primary beneciary for the entire tax

year is your spouse who is more than 10 years younger than you.

In this case, the Joint Life Expectancy Table can be used (resulting

in a longer distribution period).

EXAMPLE

$100,000

26.5

$3,773.58

Your RMD will be automatically processed

To ensure UC's plan participants are compliant, UC’s Plan record

keeper (Fidelity

Retirement Services) determines if you are

still actively employed and paid by the University based on

transmitted payroll status information from UC in December

of each year. If you are over age 73 and not shown as active and

paid by UC, then Fidelity will automatically issue your first year

RMD by mid-March of the following year (as described above).

Then RMDs must continue each year, before the end of each

year, regardless of whether you return to work at UC.

If you believe you should receive an RMD and/or did not receive

an automated distribution, please make sure you contact

Fidelity before the deadlines to start you RMDs. You should

always consider consulting with your tax advisor if you have any

additional concerns and questions.

AGE FACTOR AGE FACTOR AGE FACTOR AGE FACTOR

72 27.4 85 16.0 98 7.3 111 3.4

73 26.5 86 15.2 99 6.8 112 3.3

74 25.5 87 14.4 100 6.4 113 3.1

75 24.6 88 13.7 101 6.0 114 3.0

76 23.7 89 12.9 102 5.6 115 2.9

77 22.9 90 12.2 103 5.2 116 2.8

78 22.0 91 11.5 104 4.9 117 2.7

79 21.1 92 10.8 105 4.6 118 2.5

80 20.2 93 10.1 106 4.3 119 2.3

81 19.4 94 9.5 107 4.1 120+ 2.0

82 18.5 95 8.9 108 3.9

83 17.7 96 8.4 109 3.7

84 16.8 97 7.8 110 3.5

UNIFORM LIFETIME TABLE

Can I schedule my RMDs?

You have the option of scheduling “automatic withdrawal payments” (AWP) for the

current and future years. This service will allow you to establish an electronic funds

transfer (EFT) payment, so that your distribution will be deposited directly to your

chosen bank account, as well as choose the specific date(s) of your RMD payment

every year. With AWP you will also be able to customize your tax withholding.

If you want to schedule an

automatic withdrawal for the

current year, you must contact

Fidelity Retirement Services at

1-866-682-7787.

EXAMPLE

A 73-year-old participant has a UC-sponsored 403(b) Plan from which no distributions have been taken during 2022. This 403(b) Plan

is subject to the RMDs.

YOUR

CALCULATION

Log on to your

accounts or

call Fidelity

for 12/31 balance

Call Fidelity

for balance

A – B

Use table

on page 2

C ÷ D

–

÷=

A B C D

year-end balance

12/31/86 balance

in 403(b) Plan

Amount subject

to 2024 RMD

Uniform Lifetime

Table factor

2024

RMD

Beneficiary accounts

The beneficiaries of deceased retirees who maintain 403(b),

457(b), or DC Plan balances in the University’s Retirement Savings

Program are also subject to the IRS rules regarding RMDs.

Name your beneficiary for your 403(b), 457(b), and

DC plans

If you have not named a beneficiary for your account and want

to do so, log on to www.myUCretirement.com, click

Update

Beneficiary

in the

Supplemental Retirement Benefits

tab at the

top to name your beneficiary online. Be sure to name a beneficiary

for each of your plans. You may also name your beneficiary

by calling Fidelity Retirement Services and requesting a paper

beneficiary designation form at 1-866-682-7787.

Special rule if you had a 403(b) plan balance on 12/31/86

A special federal tax rule will exclude your 403(b) Plan balance as of December 31, 1986, from your RMD calculation. This special federal

tax rule will be applied until the year in which you reach the age of 75.

The amount you can exclude will be reduced by the amount of any voluntary withdrawals since January 1987, except for RMDs. If you are

eligible, Fidelity

Retirement Services will automatically exclude any pre-1987 balance when calculating your RMD. Account balances in

the 457(b) Plan or the DC Plan are not subject to this rule.

▼ ▼ ▼ ▼ ▼

SAMPLE

$100,000 $20,000 $80,000 26.5

$3,019

($80,000 ÷ 26.5)

Tax withholding

You can provide specific withholding instructions, including

electing to not have income tax withheld. If you do not provide

instructions, Fidelity Retirement Services is required to

automatically withhold federal income tax from your gross RMD

amount. The amount withheld is determined by the IRS wage

withholding tables and assumes you are married with three

withholding allowances. The withholding tax tables are available

at www.irs.gov.

Source of distribution

If you have money invested in more than one investment

fund, Fidelity Retirement Services will withdraw your RMD

proportionately from each fund in which you are invested, unless you

ask to have your RMD withdrawn from a specific fund or funds.**

Because investments can change throughout the year, you cannot

identify the specific fund(s) from which you want to withdraw your

distribution until just prior to your desired distribution date. Call

Fidelity Retirement Services for more information.

** RMDs cannot be processed automatically from BrokerageLink

. Sufficient

funds must be available and invested in the UC fund menu lineup. If all of

your investments in any UC Plan are in BrokerageLink, you must call Fidelity

Retirement Services to initiate your RMD. Direction to move sufficient funds

into the UC Fund line-up will be provided.

Fidelity Investments Institutional Operations Company, LLC.

245 Summer Street, Boston, MA 02210

735287.17.0

In conformance with applicable law and University policy, the University asserts that it is an affirmative action/equal opportunity employer. Please send

inquiries regarding the University’s affirmative action and equal opportunity policies for staff to Director of Diversity and Employee Programs, University of

California Office of the President, 1111 Franklin Street, Oakland, CA 94607, and for faculty to Director of Academic Affirmative Action, University of California

Office of the President, 1111 Franklin Street, Oakland, CA 94607.

Retirement

Savings

Program

Questions about the

403(b), 457(b), or DC Plans?

For questions about the 403(b), 457(b), or

DC Plans, please call Fidelity Retirement Services at

1-866-682-7787. Representatives are available Monday

through Friday, 5:00 a.m. to 9:00 p.m. Pacific time.

Need additional

information?

You can get additional information about your

individual plan accounts and name beneficiaries online at

www.myUCretirement.com. Click

Check your account

under the

Supplemental Retirement Benefits

Tax questions?

For tax questions, you may wish to obtain a copy of IRS

Publication 575, which discusses taxation of retirement plan

distributions. This publication also discusses required minimum

distributions and amounts that can be rolled over to an IRA.

Publication 571 discusses unique taxation rules for 403(b) plans.

Publication 590-B provides the joint life table and the table that

applies to beneficiaries. These publications are available from

local IRS offices or on the Web at www.irs.gov. You may also

wish to consult a tax advisor to discuss your individual situation.

The University of California intends to continue the benefits described here indefinitely; however, the benefits of all employees, retirees, and plan beneficiaries

are subject to change or termination at the time of contract renewal or at any other time by the University or other governing authorities. If you belong to an

exclusively represented bargaining unit, some of your benefits may differ from the ones described here.