MRD while working but not participating in 403(b) plan
The firm which previously handled my wife’s 403(b) plan dropped out of providing the service on 1/1/09. She has not nor does she intend to use one of the available service providers. She will turn 71 this year, and plans to continue working.
Is she required to take an MRD this year?
Is it possible to roll over the 403(b) to an IRA this year?
Thanks for any insights you can provide.
Permalink Submitted by Joseph Arsenault on Thu, 2009-02-12 21:34
If your wife is an employee of the 403(b) plan and owns less than 5% of the employer, she should be able to delay her RBD (Required Beginning Date) until she retires.
With the plan sponser dropping out (probably because of the postponed final regs), people have been asking about transferring their assets to an IRA.
I was told that if someone has a 403(b), a change in service providers while still employed does not count as a triggering event, however because of her age the plan may allow her to roll the money out of the 403(b), into an IRA. Hopefully someone else replies with a more insightful answer on this. I would consult with the plan administrator.
Hopefully someone speaks up if I am incorrect about this..