RMD from 403b
Jim is a 76 year old pastor who continues to work part time in his role at the church. He has a 403b in custody through the church’s national church board. They also manage the non taxable housing allowance aspect of his distributions each year. Since he is still employed and contributes to the 403b, he is not taking RMD’s from this account. However, He is considering taking RMD’s starting next year, primarily to begin reducing the balance. He doesn’t need additional income at this time. The question i have is, if he starts taking RMD’s from this 403b and continues to work, will he have to continue taking them just because he started, or can he turn them off if he decides that he no longer wants to take them, if he continues to work at the church? Thanks
Permalink Submitted by Brian Stormont on Wed, 2020-11-04 18:38
To my understanding, the rules would still apply that if he works for the full year, the RMD is not required. So, should he take a withdrawal in 2021, as long as he works the full year in 2022, he would not be required to take the distribution.
Permalink Submitted by Alan - IRA critic on Wed, 2020-11-04 20:31