Pre 1987 403B Contributions
If a individual has a 403B account with Pre and post 1987 contributions can you rollover the post 1987 contributions and leave the pre 1987 contributions in tact so that you can defer RMD distributions until age 75 per current 403B distribution rules.
If anyone has any experience on this your thoughts would be appreciated.
Permalink Submitted by Alan Spross on Fri, 2012-08-31 19:01
No, this cannot be done.
Per the following copied from the 2002 IRS RMD Regs, any amount distributed from a 403b plan in excess of the RMD on the post 86 balance is deemed to come from the pre 87 balance (see final sentence). Therefore, if any individual does an IRA rollover, the pre 87 amount is applied first to that rollover:
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(c) In applying the distribution rules
in section 401(a)(9), only the post-’86
account balance is used to calculate the
required minimum distribution for a
calendar year. The amount of any
distribution from a contract will be
treated as being paid from the post-’86
account balance to the extent the
distribution is required to satisfy the
minimum distribution requirement with
respect to that contract for a calendar
year. Any amount distributed in a
calendar year from a contract in excess
of the required minimum distribution
for a calendar year with respect to that
contract will be treated as paid from the
pre-’87 account balance, if any, of that
contract.
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