Once you're age 70 1⁄2, tax laws require you to begin taking distributions from your traditional IRA. The amount that you are required by law to withdraw from your account in any given year is called your required minimum distribution.

• If you reached 70 1⁄2 this year, you must take your first distribution by April 1 of next year.
• If you reached 70 1⁄2 before this calendar year, then you must take your subsequent distributions by December 31 of each year.

The minimum distribution rules apply to all of your traditional IRAs, including those invested in the Northern Funds and those invested with other institutions. You may choose to take your required minimum distribution from a single IRA account or any combination of your IRA accounts, regardless of where your accounts are invested. It is important that you determine whether you must take a required minimum distribution and provide direction to one of your financial institutions to make that distribution. Northern Funds will not make a distribution without your direction.

Calculating Your Distributions

The IRA Distribution Calculation Worksheet will help you determine the minimum distribution amount you must take. Please remember to include all traditional, SEP and SIMPLE IRA accounts, but not Roth IRA or Education Savings Accounts. To complete the worksheet, you'll need to refer to the life expectancy tables. If your beneficiary is your spouse and is at least 10 years younger than you, use the Joint Life and Last Survivor Expectancy Table. Everyone else uses the Uniform Table.

Taking a Distribution from Your Northern Funds IRA

If you decide to take your distribution from your Northern Funds IRA account, you may reinvest it in a Northern Funds non-IRA account. Although you will have to pay income taxes on the distribution, reinvesting gives your investment the opportunity for additional growth potential. You may want to contact a tax advisor to determine the best option for your particular situation.

To take a distribution from your Northern Funds IRA account or to change your existing distribution option, please complete the IRA Distribution Request Form. If you choose to reinvest your distribution in an existing Northern Funds account, just return the completed form to:
 

If you're reinvesting into a new Northern Funds account, you'll need to also include a New Account Application. You can obtain an application, as well as a prospectus, from this Web site or by contacting the Northern Funds Center at 800/595-9111. The prospectus contains more complete information, including management fees and expenses. Please read it carefully before you invest or send money.

If you have any questions about your required minimum distribution, our Northern Funds Center representatives will be happy to assist you. They're available at 800/595-9111 weekdays from 7:00 a.m. to 7:00 p.m. Central time.