403b Pre-1987 money, RMDs

Submitted by Dennis Prout on Tue, 2013-09-24 17:18

For the “old money” portion of a 403b;

– Is the Required Beginning Date for RMDs April 1 of the year following the year the participant turns age 75?

– Can the “new money” portion be rolled to an IRA prior to age 75, leaving the “old money” in the 403b until age 75?

Thanks!



Submitted by Alan - IRA critic on Tue, 2013-09-24 19:07

  • 1) Old money RBD is the later of 12/31 of the CY employee reaches age 75 OR 4/1 of the CY following the CY in which the employee retires. 4/1 does not apply to the age 75 portion for an employee already retired by age 74.
  • 2) No. Distributions other than RMDs are deemed to come first from the old money. An IRA rollover is considered a distribution, so the new money cannot be rolled over leaving the old money behind. Such a rollover would eliminate the age 75 option for the old money since that money would no longer be in the 403b.

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