70 1/2 year old teacher
A teacher turned 70 1/2 in 2013 and is still working. Does she have to take a RMD from the 403(b) she maintains at her current employer?
She also has a 403(b) plan from a previous school district – a previous employer. Does she have to take a RMD from this 403(b)? The 403(b) from her previous employer is a separate account from her current 4034(b).
Permalink Submitted by Alan - IRA critic on Thu, 2013-10-24 20:17
She does not have to take RMDs from the current employer plan except in those few exceptions where the plan requires it for all employees at 70.5. To be sure, she should ask. But she definitely needs to take RMDs from the plan of her previous employer. Her required beginning date for that plan is 4/1/2014.
Permalink Submitted by Robert Wright on Thu, 2013-10-24 22:29
Thanks Alan.
Permalink Submitted by Thomas Cerny on Tue, 2013-12-03 16:52
However, couldn’t she rollover her previous employer’s plan into her current employer’s plan and not be subject to RMD’s till retirement from current employer?
Permalink Submitted by Alan - IRA critic on Tue, 2013-12-03 18:08
Yes, that is an option. But the previous plan would be subject to RMDs in the rollover year unless the rollover occurred prior to the year employee reached 70.5.