403b Pre-1987 money, RMDs

Submitted by Dennis Prout on Tue, 2013-09-24 17:18

For the “old money” portion of a 403b;

– Is the Required Beginning Date for RMDs April 1 of the year following the year the participant turns age 75?

– Can the “new money” portion be rolled to an IRA prior to age 75, leaving the “old money” in the 403b until age 75?

Thanks!

Permalink Submitted by Alan - IRA critic on Tue, 2013-09-24 19:07

1) Old money RBD is the later of 12/31 of the CY employee reaches age 75 OR 4/1 of the CY following the CY in which the employee retires. 4/1 does not apply to the age 75 portion for an employee already retired by age 74.
2) No. Distributions other than RMDs are deemed to come first from the old money. An IRA rollover is considered a distribution, so the new money cannot be rolled over leaving the old money behind. Such a rollover would eliminate the age 75 option for the old money since that money would no longer be in the 403b.