403b ROTH – are tax rules different?
Client has had his 403b ROTH for over 5 years. He is over 59 1/2 years of age.
He is still employed at the school district.
Can he take a qualified distribution and it be tax free?
Don’t know if the rules are different if funds are in a 403b account.
Thanks
Permalink Submitted by William Tuttle on Wed, 2021-05-26 17:04
An employer may, but is not required to allow in-service distributions >= age 59 1/2. The client should check with the plan to see if this is allowed and what rules exist.
Since the client’s Roth 401k is fully qualified, distributions of both contributions and earnings are tax free.
As I stated earlier, there may be rules about the amount and frequency of distributions.
While there are some differences between a 403b and a 401k plan. None exist in this scenario.