RMD required in this case?
I am 72 years old and contribute to a 403b plan at work. Since I am still working, I have not had to take RMD’s from the plan. Over the past 10 years, I have converted all the funds in the plan to a conduit IRA and then to a ROTH IRA and paid the tax. Each year I now make new contributions to the plan over the first 10 months of the year, and then in November or December roll all of the assets over to an IRA and immediately to a ROTH IRA so that there are zero dollars in the 403b and IRA on December 31st of each year. If I were to retire on December 31 of 2008, I figure that I would NOT have to take a RMD from the 403b this year before rolling over to an IRA and susequent ROTH IRA since there were zero dollars in the 403b and IRA on December 31, 2007. Is that correct?
Permalink Submitted by Alan Spross on Thu, 2008-11-13 00:34
Yes. with no prior 12/31 balance, there is no RMD requirement. You just need to be sure that there is no outstanding rollover or recharacterization in the mill as of 12/31. The way you are doing this, there should be no outstanding rollovers.