IRA AND A 403(B) RMD IN A THE FIRST YEAR
Can a person who is about to take their first year distribution pass on the rmd from the 403(b) and take the required amount + the IRA RMD from the IRA only or MUST they take the 403(b)’s rmd also?
Can a person who is about to take their first year distribution pass on the rmd from the 403(b) and take the required amount + the IRA RMD from the IRA only or MUST they take the 403(b)’s rmd also?
Permalink Submitted by Alan - IRA critic on Thu, 2016-09-01 18:27
While both 403b RMDs and IRA RMDs can be aggregated, they cannot be aggregated with each other. The person must take the 403b RMD from one of their 403b plans and separately take the IRA RMD from one of their IRA accounts.
Permalink Submitted by ROBERT HORN on Thu, 2016-09-01 19:04
A bIg thank You for that
Permalink Submitted by Alan - IRA critic on Thu, 2016-09-01 20:11
Sorry, I missed the first part of your question regarding the deferral options for year 1. The aggregation rules still apply where one plan cannot distribute the RMD for the other plan, but in the first RMD year it is OK to NOT take any RMD from one of the plans but take the RMD for the other plan. Therefore, for the 403b plan the age 70.5 year RMD can be deferred to the second year and in following year both RMDs must be taken, the first one by 4/1. Meanwhile the IRA can distribute the first year RMD in the first year and not defer it to the second year.