New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
RMD Roundup: A Few Key Updates About Required Minimum Distributions For MASSMutual Employees
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Energy market instability persists, with crude prices fluctuating between $50 and $120 per barrel and annualized volatility running around 80%. The effects reach well beyond the energy sector. Energy price swings affect insurer investment portfolios and the broader economic conditions that drive policy demand and claims patterns. For MASSMutual employees focused on long-term financial health, periods of oil-driven economic volatility reinforce the value of diversified strategies that account for how energy markets influence the broader investment landscape. Working with a financial advisor can help you position your planning strategy for sustained energy price uncertainty.
As we approach the end of 2026, now might be a good time for MASSMutual employees to take a closer look at a few developments surrounding required minimum distributions (RMDs) for corporate employees in the United States.
What Are RMDs?
We'd first like to ensure that our MASSMutual clients understand the basics— What are RMDs? Once you reach age 72, you are required to take minimum distributions from your traditional IRAs and most employer-sponsored retirement plans. (RMDs are not required from an employer plan if you are still working at the company sponsoring the plan and you do not own more than 5% of the company.) You can always take more than the required amount if you choose.
The portion of an RMD representing earnings and tax-deductible contributions is taxed as ordinary income, unless the RMD is a qualified distribution from a Roth account. We'd like our clients from MASSMutual to note that failing to take the full amount of an RMD could result in a penalty tax of 50% of the difference.
Generally, RMDs must be taken by December 31 each year. You can delay your first RMD until April 1 following the year in which you reach RMD age; however, it's important that these MASSMutual employees be aware that you will then need to take two RMDs in one year — the first by April 1 and the second by December 31. (If you reached age 73 in the first half of 2026, different rules apply; see below.)
You may want to weigh the decision to delay your first RMD carefully. Taking two distributions in one year might bump you into a higher income tax bracket for that year.
New RMD Age and a 2026 Waiver Add Complexity
However, there was a post-pandemic era-related rule change in 2020 that might have affected some retirement savers who reached age 70½ in 2026. To help individuals manage financial challenges brought on by the post-pandemic era, RMDs were waived in 2020, including any postponed from 2019. In other words, some taxpayers could have benefitted from waiving both their 2026 and 2026 RMDs.
Any of our clients from MASSMutual who took advantage of the 2026 waiver should note that RMDs resumed in 2026 (and continue in 2026) and need to be taken by December 31. The option to delay to April 1, 2026, applies only to first RMDs for those who reached age 72 on or after July 1, 2026.
New Life Expectancy Tables
Recognizing that life expectancies have increased, the IRS has issued new tables designed to help investors stretch their retirement savings over a longer period of time. Investors may be pleased to learn that calculations will typically result in lower annual RMD amounts and potentially lower income tax obligations as a result.
For any MASSMutual employees who would like more information on RMDs, consider speaking with your financial and tax professionals.
Before finalizing any estate plan, it is worth examining how MASSMutual's employer-sponsored benefits fit into the broader picture. According to publicly available information, MASSMutual maintains an active defined benefit pension plan, which provides retirement income based on factors such as years of service and compensation history. MASSMutual does not appear to offer a formal retiree healthcare program, making healthcare coverage planning an important consideration if you retire before age 65. Because the specifics of your pension formula, vesting schedule, and benefit eligibility depend on your individual employment history and plan documents, We encourage you to review your Summary Plan Description (SPD) or speak with MASSMutual's HR or benefits team for the most current details.
What is the primary purpose of the 401(k) plan offered by MASSMutual?
The primary purpose of the 401(k) plan offered by MASSMutual is to help employees save for retirement in a tax-advantaged way.
How can employees at MASSMutual enroll in the 401(k) plan?
Employees at MASSMutual can enroll in the 401(k) plan through the company’s benefits portal or by contacting the HR department for assistance.
What types of contributions can employees make to their MASSMutual 401(k) accounts?
Employees can make pre-tax contributions, Roth (after-tax) contributions, and possibly catch-up contributions if they are age 50 or older.
Does MASSMutual offer a company match for 401(k) contributions?
Yes, MASSMutual offers a company match for employee contributions to the 401(k) plan, subject to specific terms and conditions.
What is the vesting schedule for the company match at MASSMutual?
The vesting schedule for the company match at MASSMutual typically follows a graded vesting schedule, which means employees earn ownership of the match over a period of time.
Can employees at MASSMutual take loans against their 401(k) savings?
Yes, employees at MASSMutual may have the option to take loans against their 401(k) savings, subject to plan rules and limits.
What investment options are available in the MASSMutual 401(k) plan?
The MASSMutual 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and possibly company stock.
Are there any fees associated with the MASSMutual 401(k) plan?
Yes, there may be fees associated with the MASSMutual 401(k) plan, such as administrative fees and investment management fees, which are outlined in the plan documents.
How often can employees change their contribution amounts in the MASSMutual 401(k) plan?
Employees can typically change their contribution amounts to the MASSMutual 401(k) plan on a regular basis, often at any time during the year.
What resources does MASSMutual provide to help employees manage their 401(k) investments?
MASSMutual provides various resources, including online tools, educational materials, and access to financial advisors to help employees manage their 401(k) investments.
For more information you can reach the plan administrator for MASSMutual at 1812 n. moore st Arlington, VA 22209; or by calling them at 1-818-549-6000.
https://www.massmutual.com/documents/pension-plan-2022.pdf - Page 5, https://www.massmutual.com/documents/pension-plan-2023.pdf - Page 12, https://www.massmutual.com/documents/pension-plan-2024.pdf - Page 15, https://www.massmutual.com/documents/401k-plan-2022.pdf - Page 8, https://www.massmutual.com/documents/401k-plan-2023.pdf - Page 22, https://www.massmutual.com/documents/401k-plan-2024.pdf - Page 28, https://www.massmutual.com/documents/rsu-plan-2022.pdf - Page 20, https://www.massmutual.com/documents/rsu-plan-2023.pdf - Page 14, https://www.massmutual.com/documents/rsu-plan-2024.pdf - Page 17, https://www.massmutual.com/documents/healthcare-plan-2022.pdf - Page 23
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