RMD Rules for Deceased 403(b) Pre-Retirees
University Proferssor, Age 79, still employed, owns 403(b), so he has exemption in delaying RMD until he retires.
Prof dies 12/15/08. Is there an RMD before 403(b) transfers to his wife who is age 50?
University Proferssor, Age 79, still employed, owns 403(b), so he has exemption in delaying RMD until he retires.
Prof dies 12/15/08. Is there an RMD before 403(b) transfers to his wife who is age 50?
Permalink Submitted by Alan Spross on Mon, 2008-01-28 20:45
There is no 2008 RMD requirement because he would have passed prior to his RBD. Note that if wife rolls this over to her own IRA, she will face early distribution penalties until she reaches 59.5.
To avoid that she would have to maintain her interest in inherited status until then or start a 72t plan if she transfers it to her own IRA.
Permalink Submitted by Al Fry on Mon, 2008-01-28 21:03
Or, they may allow her to do a direct transfer to an inherited IRA, in which case, as Alan pointed out, the 10% penalty would not apply to distributions.