rmd from a 403B
A client just turned 70 in December 2016. He is still contributing to a 403B from a different employer. He was told that he does not have to take an RMD in 2017 as long as he is still contributing to a 403B plan with his current employer. Is this correct?
Dennis Lenner
Permalink Submitted by Alan - IRA critic on Mon, 2016-11-28 22:46
No. He must start RMDs on the former 403b plan. He reaches 70.5 in 2017 which means his required begining date from that plan will be 4/1/2018. The required begining date for former 403b plans is not affected by participating in a current 403b plan. Now if he rolled the old 403b into the current plan before the end of this year, then RMDs from the old plan would be avoided until he retired from the employer sponsoring the current 403b.