could 403b RMD come out of an IRA and vice versa
Hello,
we have a client that inherited all his deceased wife’s TSA ( tax shelter annuity) assets. she was deceased in 2010. husband took her RMD out of her 403b out of his IRA. is that OK?
Hello,
we have a client that inherited all his deceased wife’s TSA ( tax shelter annuity) assets. she was deceased in 2010. husband took her RMD out of her 403b out of his IRA. is that OK?
Permalink Submitted by Alan Spross on Thu, 2011-06-30 18:22
Did client roll the inherited 403b over to an IRA? Or is the 403b still in place?
Permalink Submitted by Shahpar Naghshineh on Fri, 2011-07-01 14:34
403b has already been rolled over to the IRA.
Permalink Submitted by Alan Spross on Fri, 2011-07-01 18:29
The 403b administrator should have held the RMD out of the rollover. Did they fail to do that?
If so, then the RMD is still considered to have been distributed from the 403b, except that it was rolled over to an IRA. The tax return should show a taxable distribution on line 16 from the 403b in the amount of the RMD and the rollover would be only for the balance. Since the RMD was rolled over, there is an excess regular contribution to the IRA that needs to be distributed in the usual manner with an earnings calculation. The IRA RMD is a separate requirement and should also be taken care of.