Discussion:RMD - Separate distribution from different types of accounts?
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Discussion Forum Index --> Basic Tax Questions --> RMD - Separate distribution from different types of accounts?
Discussion Forum Index --> Tax Questions --> RMD - Separate distribution from different types of accounts?
| 7 November 2007 | |
| I thought I had asked or read this once before on TA, but I cannot find the thread. So, sorry in advance.
I have a client that has an IRA and a 403b. Does she need to take her RMD out of each account separately? Or can she aggregate the balances and take the total RMD from her IRA only? | |
| 7 November 2007 | |
| Distributions from an IRA cannot be used to satisfy the RMD requirement for a 403(b) account. Similarly, distributions from a 403(b) account cannot be used to satisfy the RMD requirement for an IRA. See Reg ยง 1.408-8, Q&A 9. | |
| 8 November 2007 | |
| Thank you, Riley.
Follow up question: If my client rolls her 403b into an IRA before the end of the year, can she then aggregate the balances and take the distribution solely from her IRA accounts? | |
| November 8, 2007 | |
| Maybe depends on whether she's had to take MRD's yet? If not, I assume she could roll her 403b and then just deal with the IRA's. Right? | |
| 8 November 2007 | |
| Wes, My question was not about rolling over an RMD taken from a 403b into an IRA.
My client had a 403b with a balance at 12/31/06. She has taken a sufficient distribution from her IRA so far in 2007 to cover her RMD requirements for her IRA plus 403b balances. However, she has not taken a distribution from her 403b. Can my client rollover the 403b to an IRA before year-end and be relieved of the requirement to take an additional distribution from her 403b balance? | |
| 8 November 2007 | |
| Hi you have the answers above riley pointed out you must take a MRD from the 403b account and I answered your question that you cannot R/O the 403b account before you take the MRD from IT. Just because your client took too much from the IRA doesn't change the fact she still needs to take the MRD from the 403b BEFORE she rolls it into the IRA. bye | |
| 8 November 2007 | |
| Agree with WesR. Cannot roll an RMD into an IRA. The RMD for the 403(b) plan must be taken out before the rollover. | |
