457(b) Distributions and RMD's - Ed Slott and Company, LLC

Submitted by Saleah Hewitt on Wed, 2015-04-15 22:58

I am working with a physician who has an old 457(b) plan that he has started receiving income from. He is turning 70 1/2 this year. Does the income from this plan count towards the client’s RMD for 2015?

Thank you,

Saleah

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Permalink Submitted by Alan - IRA critic on Thu, 2015-04-16 00:01

I assume he will be receiving a 1099R for this income. Any amount reported on a 1099R counts toward the RMD for the year. Since this is his first RMD distribution year, for 2015 he can distribute anywhere from 0 to 100% of his 2015 RMD, but the full 100% must be distributed by 4/1/2016.