RMD from a 403B denied
TIAA Cref tells client they will not let them take RMD because they already transferred out liquid part of IRA. Can they even do that?
TIAA Cref tells client they will not let them take RMD because they already transferred out liquid part of IRA. Can they even do that?
Permalink Submitted by Alan - IRA critic on Fri, 2015-12-11 20:01
Is this one of those 5 year distribution plans where they receive 1/5 of their balance each year for 5 years, or something similar?
Permalink Submitted by Mobey on Fri, 2015-12-11 20:48
My understanding from client is they made annual dist and next one isn’t until 2016. That dist was rolled to an IRA and no RMD was taken from it (again per client).Can he take RMD from the IRA for both IRA and 403b and be OK? (I know he’s supposed to take it from the 403b).
Permalink Submitted by Alan - IRA critic on Fri, 2015-12-11 23:34
403b RMDs can only be aggregated with other 403b plans, and IRA RMDs can only be aggregated with other IRA accounts. TIIA CREF is one of the top 403b custodians in the country and they should know how RMDs are to be handled. They should be sure to distribute the 403b RMD to the participant before rolling over any other portion of the account in an RMD distribution year.
Permalink Submitted by Mobey on Mon, 2015-12-14 17:01
My thoughts exactly.