employer sponsored plans and RMDs

Submitted by Robert Ervolina on Mon, 2020-02-10 21:35

HI:

I have a couple questions:

1. Regarding RMDs of employer sponsored plans, I understand an employee must take a separate RMD from each 401k he owns and cannot aggregate 401k plans. However, can a client aggregate 403b plans and take the RMD from one 403b? Additionally, his IRA would be a separate RMD correct?

2. If a client owns IRAs and a 457 plan, is the rule the same as with 401ks? In other words, if he owns 3 IRAs and one 457 plan, assuming RMD age, can he aggregate the 457 RMD with the IRAs or must he take a separate 457 plan RMD as well?

Thx



Submitted by Alan - IRA critic on Mon, 2020-02-10 22:54

  1. Yes, that is correct. Permitted 403b aggregation with other 403b accounts presents a challenge to 403 administrators since it requires annual communication with the participant. IRA RMDs can only be aggregated with other IRAs, and owned and inherited IRA RMDs cannot be aggregated with each other.
  2.  The 457 RMD must be satisfied separately from the IRA RMDs.

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