RMD 403(b) & IRA
My client is 74 years of age and has a TIAA CREF 403(b) and an IRA invested in mutual funds. With the end of the year statements she added the two accounts together, divided by the factor and called TIAA to take the entire RMD from the CREF account. She was told that the TIAA CREF accounts are all separate contracts and she needs to take from each one. She cannot satisfy the RMD from the IRA by taking from CREF. Any thoughts? Pub 590 and the IRA website and TIAA website are no help.
Permalink Submitted by mk foss on Thu, 2010-03-18 03:05
The IRS regulations allow an individual to do exactly what you describe BUT the IRS regulations tell you the least restrictive acts that are allowed. Any custodian or annuity provider can set their own rules; they do not have to follow the IRS regulations that allow combining the accounts for RMD purposes as long as they are not more flexible than the IRS rule. The policy actually makes sense when you are dealing with separate contracts.
Permalink Submitted by Alan Spross on Thu, 2010-03-18 03:13
Mary Kay,
I think you were reading the post as if these were BOTH 403b accounts?
Since one was an IRA the IRS would not allow aggregating in any event.