Company 401A and 457B

Submitted by Edward Engler on Wed, 2022-08-24 20:12

78 yr. old, stopped working in 2021, have company plans 401A and 457B. Are these like IRAs, do I need to take RMDs?
And can I roll them over (trustee-transfer) w/o taxes into my IRAs at my brokerage accounts ?
Thank you !



Submitted by Alan - IRA critic on Wed, 2022-08-24 22:23

  • RMDs are required for both plans. If you retired in 2021, then 2021 was your first RMD distribution year and the plans should have distributed an RMD to you for 2021, but no later than 4/1/2022. If not done both you and the plan are in violation of the RMD rules.
  • Only a govt 457b plan can be rolled over to an IRA. A non govt plan cannot. If eligible for rollover, the 2022 RMD must be distributed from the plan prior to the rollover or at the same time. The eligible rollover would not be taxable. In 2023 your IRA RMD would increase due to the increased 12/31/2022 balance.

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