RMDs
We have a new client that recently transferred some of her qualified accounts around: Two IRAs and one 403B are now aggregated into one IRA. Prior to moving the 403b we needed to take her RMD, which we did. However, it appears as though we took more out than we needed to, approximately $284 in excess from the Vanguard 403b. She still needs to take RMDs from the remaining IRAs. Can we apply this excess withdrawal of $284 towards the RMDs that we still must make from the new IRA?
Permalink Submitted by David Mertz on Tue, 2016-09-13 20:18
An IRA RMD can only be satisfied with a distribution from an IRA. If it has been no more than 60 days since the distribution from the 403(b), the $284 that was not RMD can be rolled into the IRA, which would have the same effect once the RMD from the IRA is made.