Rmd-403b-Active Employee
My client has 2 403(B) accounts. One is actively funded, one is not. Both were earned thru current employer. Client has turned 70 1/2, he is still working part-time instead of full-time. Is he forced to take RMD from the inactive 403(B)? Amount to be based on 12/31/2009 balance of inactive 403(B)? I believe he does not have to take RMD from the actively funded 403(B) but, please correct me if I’m wrong.
Permalink Submitted by Alan Spross on Fri, 2010-10-01 23:21
First, the client must receive confirmation that his part time employment is sufficient under the employers rules such that he is NOT considered retired and therefore his RBD is extended to the 4/1 of the year following retirement. Also, he must be sure that the plan does not override the IRS definition of RBD.
With respect to the inactive 403b, since it was maintained by the employer when contributions were made, I would assume that the points above also apply to it. RMDs from 403b and qualified plans are administered by the plan administrators, therefore it would be prudent to ask the current plan administrator this question. If they indicate that he does not have to take RMDs from the inactive plan, I would not worry about it. The new 403b Regs do not seem to have clearly addressed this question.