reverse rollover

Submitted by arun parikh on Mon, 2020-12-28 20:39

fun topic, only 3 days left for me
i am midway in rolling over large amount from tira at brokerage
to workplace 457b, with empower, wisconsin deferred compensation, still working (at 71)
i get conflicting opinion if the transferred money will be subject to rmd next year. I believe if it is in the 457, NO rmd has to be taken. but empower, receiving administrator, not sure
alan you do great volunteer work, i love the site
happy new year



Submitted by Alan - IRA critic on Mon, 2020-12-28 22:47

  • There are two issues here, the account balance and the “still working exception”. As for the account balance, if the IRA distribution is made before year end and therefore no longer in your IRA, the receiving 457b will have to add the rollover to your 12/31/2020 balance for determining your 2021 RMD, if you have one.
  • But you won’t have one if you remain working (enough hours) for the entire year of 2021 since that will qualify you for the “still working exception”. 
  • Rolling the TIRA out by year end will eliminate RMDs on that former IRA money for as long as you continue to qualify for the still working exception. But if you retire in 2021 and will be 72, then you will have a 457b RMD due for 2021, with a required beginning date of 4/1/2022.

Submitted by arun parikh on Thu, 2020-12-31 14:23

yes just what i thought too, thx.happy new year

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