Partial 403b (b) Rollover
A client is age 74 and did a partial rollover from her 403(b) to a new IRA account. Currently, she is still inservice and the RMD was not taking out before the funds arrived to the IRA account. Does the client now need to take an RMD from the IRA account since she is still working? If the client does not need to take an RMD this year. Will the client need to take two RMD’s from the IRA in 2019? one by April 1st?
Permalink Submitted by Alan - IRA critic on Fri, 2018-10-05 21:29
The client will not have an RMD for this rollover money until 2019. The April first date does not apply here because for IRA accounts 4/1 is only the required beginning date for the year client reaches 70.5. Therefore, the 2019 RMD will be due by 12/31/2019. If client is going to continue to work beyond 2019, the IRA rollover will accelerate the start of RMDs.
Permalink Submitted by Larisa Kutac on Fri, 2018-10-05 21:37
accelerate the start of RMD for IRA,but will not have to take RMD from 403(b) if still working?
Permalink Submitted by Alan - IRA critic on Fri, 2018-10-05 21:45
Yes, the still working exception will apply to the 403b, but not to any IRA balance. The portion of the 403b that remained in the plan will not be subject to RMDs until the year of retirement, but the partial rollover balance will be subject to RMDs from the IRA in 2019.