Is an RMD required from a 403b if employee works a partial year?
If an individual who is over age 70 1/2 is still working for a employer where they have a 403b, if they stop working and come off the payroll of that company prior to December 31st of that year, do they then have to take an RMD from the 403b? Or is the RMD waived if they work a partial year?
Permalink Submitted by Alan - IRA critic on Tue, 2013-07-23 18:50
There is an RMD due for that year if they separate anytime during the year, but the distribution can be taken as late as 4/1 of the following year. The RMD must also be distributed at the time of any IRA rollover. Note that the 403b balance as of 12/31/1986 is not subject to RMDs until age 75.