457 Plan RMD to cover IRA RMD
Client took a distribution from his 457 plan in excess of his 457 RMD requirement from the plan. He assumed the excess would cover his IRA RMD. I know 401k plans must have RMD taken from each plan and not aggregated with multiple 401k plans nor does a IRA distribution count towards the 401k RMD figure.
I assume a 457 plan works the same way and the excess 457 plan distribution can’t be used to offset no IRA RMD distribution. For the clients sake hoping I’m wrong or a new rule now allows this?
Permalink Submitted by Alan - IRA critic on Sat, 2022-12-31 03:48
You are correct. If still within 60 days, the excess of the 457 RMD could be rolled over to the IRA, but the IRA RMD is delinquent, must be withdrawn in 2023 and a 5329 filed to request waiver of the penalty.