403b RMD
I have a client who is over 70 1/2 years old. She is still working for the employer who she has a 403b plan with. She is still contributing to the 403b. If she rolls a portion of the 403b plan into an IRA this year, when does she have to take the RMD for the amount she rolls over to an IRA. Does she have to do that in 2016 or can she wait until 2017?
Permalink Submitted by Alan - IRA critic on Sun, 2016-07-10 23:25
The IRA value will be increased 12/31/2016, so the RMD on that increased value would be taken in 2017. If there is any pre 1987 balance in the 403b, the rollover will include that value first. In addition, she must work beyond 12/31/2016 to avoid a 2016 RMD for the 403b.