10 Additional Plan Information 10.1 Cost of Living Adjustments Cost of Living Adjustments (COLA) do not apply to My Choice Plan members. 10.2 13th Check Annual Supplemental Payment 13th checks do not apply to My Choice Plan members. 10.3 Required Minimum Distribution (RMD) Information The Internal Revenue Service (IRS) requires you to take required minimum distribution (RMD) if you have an interest in a pension benefit. Section 401(a)(9) of the Internal Revenue code (IRC) requires INPRS to begin paying distributions of your benefit starting April 1 of the calendar year following the latter of when you obtain the RMD age specified by the IRS or separate from employment: RMD Age Condition(s) Source 70 ½ Reach age 70 ½ before 01/01/2020 Pre Secure Acts 72 Turn 70 ½ on and after 01/01/2020 Secure 1.0 73 Turn 72 on and after 01/01/2023 & reaches 73 before 01/01/2033 Secure Act 2.0 75 Turn 74 on or after 01/01/2033 Secure Act 2.0 • Anyone who turned 72 in 2022 or earlier follows the old rules. Those who turned 72 in 2022 had to take their first RMD no later than April 1, 2023. • Those who turn 72 in 2023 and any time through 12/31/2032 (born from 1951 to 1959) must take the first RMD by April 1 of the year after they turn age 73. • Anyone born in 1960 or later must take their first RMD by April 1 of the year after they turn age 75. If the benefit does not begin in a timely fashion, the IRS will impose a 25% penalty on the member due to a late distribution. The IRS could reduce that penalty to 10% if the member receives a distribution within a correction window. You must complete the online retirement application through the Retirement Application Center (RAC) from . If the application is not completed on time, RMD payments your online account at myINPRSretirement.org will automatically begin if you have separated from employment and have not begun the distribution process. If INPRS does not receive the application by December 31, and the member meets the RMD requirements described in federal law and above, INPRS will undertake to contact you to set up the RMD for distribution of any retirement and/or DC and/or Rollover-Pre-Tax Contribution funds to which you are entitled. Furthermore, INPRS is required to adjust the benefit for any IRS imposed penalties. See 35 IAC 14-7-7 for more detailed information regarding INPRS’s RMD process. NOTE: Effective January 1, 2022, for INPRS DC plans the RMD rules for beneficiaries are modified if you die after December 31, 2021. See the Secure Act and 26 USC § 401(a)(9). If a beneficiary is not an eligible designated beneficiary, the distribution of the interest must be made payable within 5 years after the member’s death. TRF My Choice: Retirement Savings Plan Member Page 26 of 30 Handbook Effective: 07/01/2024