403(b) to TIRA and RMDs
I have one 403b account and one TIRA account.
In 2010, I had to take an RMD from each account [no aggregating the accounts for RMD purposes].
If I convert the 403b to a new TIRA in January 2011, can I aggregate the two TIRA accounts for my 2011 RMD and take the total 2011 RMD from just one of the TIRA accounts even though on 12/31/2010 I still had two different types of accounts?
Permalink Submitted by Alan Spross on Wed, 2010-12-22 18:03
No, you cannot aggregate them in 2011. Prior to your 2011 direct rollover (or conversion if you chose to convert to a Roth IRA), you must take your 2011 RMD from the 403b plan based on the value as of 12/31/2010. And you 2011 IRA RMD will be based on the IRA value on 12/31/2010, but for that RMD you can wait until year end 2011 if you wish.
If you plan to continue two TIRA accounts into 2012, you can aggregate your 2012 RMDs because they are both TIRAs.
Permalink Submitted by Robert Wright on Wed, 2010-12-22 19:15
Thanks, as always, Alan.