RMD Witdrawal Balance if rolled out of 403b after 70.5
An EE with the DOB of 6/18/1939 is still working for her ER (not 5% owner) has rolled all vol. funds to an IRA outside of ER on 1/11/2010. So now she will be subject to take an RMD for this year(based upon my understanding)
1. what balance do she need to use? On 12/31 the funds were in a 403b and there was no IRA so does she use the balance that establised the IRA
2. Is the RMD due by end of year or by april of this year?
Any help would be greatly appreciated and if you happen to know where the it can be found in the regs that would be great also.
Thanks,
Nick
Permalink Submitted by Alan Spross on Thu, 2010-01-21 21:03
Nick,
There is no IRA RMD due in 2010 since there was no IRA balance on 12/31/09. Also, 2010 is not an RMD distribution year for the 403b plan since EE is still working. But employee would trigger a 2010 403b RMD if they separated from service prior to 2011.
See Q&A 2 in the IRS Reg att’d:
http://www.taxalmanac.org/index.php/Treasury_Regulations%2C_Subchapter_A…
Permalink Submitted by Marvin Rotenberg on Thu, 2010-01-21 22:35
Your client turnrd age 70 1/2 in 2009. 2009 is the first distribution year for the IRA but RMDs were suspended for 2009. In 2010 they will have to take a RMD based in the amount trnafred. They must take the distribution by 12/31/10. Code sec.starting with 1.401 (a)(9)-1 thru 9.
Marvin