Avoiding RMD’s with 401K after age 70 1/2

A person turns 70 1/2 this year, is employed and is participating in a 401K. This person also has an old 403B from a former employer.

He will need to take an RMD from the 403B for 2013.

But the question is, if he rolls the 403B into the 401K after taking the RMD, and assuming he continues working, can he avoid the RMD for 2014?

In other words, does the fact that he already reached age 70 1/2 prevent him from avoiding the RMD by rolling into a 401k?

Any help would be appreciated. Thank you!



Yes, rolling the 403b into the current 401k plan before year end will avoid a 2014 RMD from the 403b. This could be done before or after 403b RMDs begin, but as you indicated the 2013 403b RMD will have to be distributed before the rollover.

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