RMD From IRA and Non IRA Retirement Account In Year of Death
I have a client who died this year. He has an IRA and a 403b retirment plan. He is over 70 1/2 and has been taking RMDs from both for years. Before he died in 2007, he taken much more than the RMD from his IRA. However, he did not take the total RMD from his 403b account before his death. Can the excess over RMD from the IRA cover the remaining 403b RMD (there is plenty to do so if allowable), or will his beneficiaries have to take out from their beneficiary IRA the remaining RMD from the 403b?
Permalink Submitted by Alan Spross on Thu, 2007-11-15 18:39
Unfortuneately, the 403b RMD deficiency will have to be distributed to the beneficiaries this year. While IRA RMDs can be aggregated with each other, and 403b RMDs can be aggregated, they cannot be aggregated with each other.
However, it should be noted that pre 1987 403b accruals that are separately accounted for in a 403b plan are not subject to RMDs until age 75. If he has not reached 75, the actual 403b RMD may be somewhat less due to this, and this should be checked with the plan administrator.