RMD at age 73
My client works full time for a major university and participates in their 403b and 401k plans. He is 73 years old. He will terminate employment on July 1 of this year. When does he have to begin taking his RMD from these plans? Is it April 1, 2014 for this year since he won’t have 1000 of service at this job? Or is 2014 the first year he will be required to take RMDs from the plans?
Permalink Submitted by Alan - IRA critic on Fri, 2013-06-07 19:16
His first RMD distribution year is 2013, and his required beginning date is 4/1/2014 if he chooses to defer all or part of the 2013 RMD to 2014. Of course, if an IRA rollover is done it will trigger all RMDs due from the plan to be distributed to him. If IRA rollover is done in 2013, the plan RMD will have to be distributed at that time. If the rollover is postponed until 2014 to keep his taxable income down in 2013 when he has salary income for half the year, then bot the 2013 and 2014 RMDs will have to be distributed at that time.