RMD and Direct Rollover to IRA
I wanted to do a Direct Rollover of $10,000 from my Governmental 457(b) Deferred Comp Plan to my rollover IRA.
Instead of a $10K rollover, the DCP Plan used most of it to fulfill the RMD requirement, leaving only a small rollover amount assigned to my rollover IRA.
Is it true that the RMD requirement has to fulfilled before a direct rollover can be made?
Since only one rollover is allowed each year, am I stuck until 2022?
Permalink Submitted by Alan - IRA critic on Thu, 2021-01-14 03:45
Yes, the RMD for the non IRA employer plan must be distributed before rolling over amounts in excess of the RMD. The one rollover limitation only applies to rollovers between IRAs of the same type, therefore this distribution from the 457b does not count with respect to the one rollover rule.