Do you hold a CSS Variable Benefit (VB) Payment account?
Did you know that an annual minimum and maximum withdrawal amount is calculated for every VB Payment account each January 1? You are required to withdraw an amount between the minimum and maximum withdrawal amounts each year.
VB Payments are taxable income. For information about taxes, please refer to the CSS article “Attention retirees!”
You can estimate the upcoming annual minimum and maximum limits for your VB Payment account using this calculation:
The following table illustrates the minimum and maximum rates. Please use this table as you continue to read through this article.
Until the year you turn age 72, there is no minimum annual withdrawal required from your VB Payment account. Beginning the year in which you turn 72, there is a minimum amount that you must withdraw each year.
Your minimum withdrawal rate will be found in the above Rate Table in the column called “VB Payment Account Minimum.”
A maximum withdrawal rate applies only to the locked-in portion of your VB Payment account. The rules are as follows:
You can calculate your own estimates using the above tips and tools.
If there is a change to your VB Payments due to the changes of minimum and maximum withdrawal requirements, you will receive a communication from CSS in mid- to late January that outlines your actual new VB payments for the year.