rolling 457 to IRA
Client is 76 years old and still working. Is considering rolling her 457 to an IRA. Will need to start taking RMD’s once it becomes IRA – my question is, does the RMD for 2019 need to be taken from the 457 BEFORE it is rolled out??
Seems like I saw that requirement for a 401k – that is it’s being rolled to IRA and RMD’s are applicable, that the initial RMD should be take from the 401k before rollover occurs????????
Can someone clarify? Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2019-07-05 20:29
Yes, if 2019 is an RMD distribution year for the 457, then that RMD must be distributed before doing a rollover. However, if the client is still working and intends to work into January and is not a >5% owner she should not be subject to RMDs from the 457. Has she been required to take RMDs in the past?