RMD’s for 87yrs old still working and contributing to 403b
I have a client who is still working and who has a 4o3b. He still contributes to his 403b and gets matching. He works for a 501c3 charity.
Questions:
- is he still eligible to waive his RMD from the 403b until he stops working?
- He has an old 401k from a past job he had many years ago. Is he allowed to waive the RMD from this 401k until he retires?
- He has an IRA from his wife who passed. This he does have to take his RMD from, even though he is still working, correct?
Thank you for the assistance.
Douglas
Permalink Submitted by Alan - IRA critic on Mon, 2025-09-22 12:30
Yes, as long as he remains on the books of the charity as an employee, there are no RMDs. RMDs start for the year in which he retires or his hours are reduced to the point where the charity no longer considers him an employee.
The old 401k plan should be distributing RMDs because he no longer works for that employer.
He needs to take IRA RMDs from the inherited IRA unless his wife still would have been under her RMD age. If she was RMD age then he should assume ownership of that inherited IRA and his RMDs as the owner will be less than as a beneficiary. If he did failed to take a full beneficiary RMD in any year, then he defaulted to ownership status back in that year and the Uniform Table would have applied to that year and all later years. But he should still have the IRA retitled as the owner to be consistent with the default rule. That will also be more beneficial for his own beneficiaries.