TIAA-CREF 403(b) and IRA RMD
Wanted to confirm whether a client who has an IRA Rollover and a 403(b) at TIAA-CREF has the option of either taking all of the Required Minimum Distribution out of their 403(b) or all of their RMD from their IRA and still satisfy the RMD rules (w/o having to take from each) . Are there exceptions? Also wanted to confirm that the RMD rules are satisfied by taking all of the RMD from either TIAA or the CREF portion and distributions from both are not required.
In a related matter, wondering whether anyone is familiar with TIAA-CREF “Annuity Contracts” that are separately identified in a different section of a clients Retirement Plan statement from TIAA CREF. I believe these “annuity contracts” are also subject to the RMD rules, but just wanted to confirm if anyone knew. Thanks.
Permalink Submitted by Alan Spross on Fri, 2011-04-29 18:51
IRA RMDs can be aggregated with each other, but each qualified plan or 403b RMD must be taken from that specific account separately. With respect to the split between TIIA and CREF, the client needs to check with the plan to see if these are considered separate plans each requiring their own RMD or whether they can be aggregated with each other. Also, note that if the client has pre 1987 403b plan accruals, the RMD for the 12/31/86 balance does not need to start until age 75. If a rollover is done to an IRA from the 403b, the pre 1987 accruals are deemed to be the first dollars out, so it is not possible to just roll the post 86 amount to an IRA and defer the RMDs on the remainder until age 75.
For the other annuity contracts, if they are part of the 403b plan, they are subject to the above rules. If they are non qualified annuities, then they are not subject to RMDs in the usual fashion. State law and/or the plan will determine when these accounts need to be annuitized or distributed.