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What is a grandfathered accumulation?

Accumulation grandfathered
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What is a grandfathered accumulation?

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Contributions and earnings credited to your account before 1987 are grandfathered and are not subject to the federal minimum distribution requirements until the year you reach age 75. If you receive any payments before you are subject to the minimum distribution requirements, or make withdrawals in excess of minimum distribution amounts, these payments will reduce your grandfathered accumulation first. In the year you reach age 75, your grandfathered amount will automatically be included in your minimum distribution calculation.

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