457B Question
Hello,
A client is a retired public safety worker and is able to exclude from income distributions made from his 457b that are used for insurance premiums.
Would these distribution amounts that are excluded from income still count towards the client’s RMD? I would think YES because there isn’t a rule that only taxable amounts count as RMDs, right?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2025-01-30 16:06
Correct. Any amount on the 457b 1099R counts toward the RMD except for 1099R forms coded to indicate the distribution of an excess deferral or contribution. Does not matter if the distribution is taxable.