Easy one?
I know that after 70-1/2 a person can take their RMDs out of any one or more IRAs to satisfy them all (assuming it’s enough) and that the same person must take RMDs separately from each 403b, 401k, etc.
But what if a person rolls a 403b or 401k to an IRA during a RMD year. I assume the account type at year end determines how the RMDs are taken – correct?
Permalink Submitted by Alan Spross on Mon, 2012-04-02 01:09
If a rollover is done in any RMD year from an employer plan, the plan should not include the RMD in the rollover. Sometimes they overlook this and the entire plan is rolled over. If so, the plan RMD is still considered to be met, but the amount of the RMD becomes an excess contribution to the IRA and it must be corrected.
During RMD years the prior 12/31 balance determines the amount of the RMD from the respective account type.
Note: 403b RMDs can also be aggregated with other 403b plans in similar fashion as owned IRAs can be aggregated with other owned IRAs. This does not apply to 401k or 457 plans.