403-b clarification
Dear Ed
thank you for the info on 403-b classifications. You mentioned pre-1987 accruals and that they may take RMD’s based on age 75 instead of 70-1/2.
Can you expand on that for me? Is there a threshold that would determine that. When I asked these teachers, they said they do have pre-1987 accruals???
thank you, I find this panel to be very helpful.
Sincerely,
Barb Lane
Permalink Submitted by [email protected] on Fri, 2007-08-24 18:40
For the pre-87 accruals, the participant can delay RMDs until age 75, as long as they are still in a 403(b) account/contract. Once moved to an IRA, this grandfathering is lost.
Permalink Submitted by Alan Spross on Sun, 2007-08-26 02:58
Al, I recall a question I think you posted on the old forum regarding the rollover of post 1986 403b accruals to an IRA, while leaving behind the pre 1987 accruals for which age 75 is the RBD. Don’t recall that we came up with anything definitive.
I still could not find anything specific on this in the new 403b Regs, but my guess would be that a plan that accounts for the pre 1987 accruals has the option of distributing those last. There are some rules regarding 401a(9) RMD distributions, but the rollover rules are not under 401a(9).