RMD and Roth conversion from two 403(b) accounts
I have two 403(b) accounts at Fidelity and TIAA. If RMDs from 403(b) accounts may be aggregated, I would like to take the sum of both RMDs from TIAA and Roth convert the Fidelity account. How do Fidelity and TIAA know that I am taking full RMD and RMD only? I understand that any withdrawal from retirement accounts is RMD.
Permalink Submitted by Alan - IRA critic on Thu, 2025-03-06 10:15
Good question, they don’t know unless you tell them. They may or may not request documentation that your total RMD was completed elsewhere.
If they still insist on making a distribution, it’s not an RMD and you can roll it over. If they treated the distribution as an RMD it would not have been rollover eligible and would avoid the mandatory 20% fed withholding in favor of a 10% rate. Therefore, if they make the distribution you could replace the withheld amount using other funds to get the total distribution into your Roth IRA.