RMD and 403b
Bill turns 73 next year (2024) and still works part-time. Although he qualifies to contribute to his 403b, he is not contributing. However, his employer is contributing. Does he still get to exempt this 403b from his RMD until he stops working?
Thanks
Permalink Submitted by Alan - IRA critic on Thu, 2023-02-09 16:01
Yes, as long as the employer considers his work schedule sufficient to qualify as an employee RMDs can be delayed until the year he no longer qualifies. The IRS has no formal requirement to qualify, so it is basically up to the employer. If he is not still working as of 1/1/2025 he will be required to take an RMD for 2024 and beyond. He should ask about this status before reducing his hours any further.