RMD from 403(b)

[Guest Donaldson]

Treas. Reg. § 1.403(b)-3 Q&A 4 provides that for purposes of calculating a participant's required minimum distribution (RMD) from more than one 403(b) plan, a participant can total the minimum amount from each 403(b) and take the total minimum distribution from any one of the 403(b) plans (rather than taking a minimum distribution from each plan). Does anyone know whether a plan must specifically permit that a person's total RMD for the year may be taken from its plan? What if a plan is silent on this point? Does that mean that a person can only take the RMD attributable to that plan only? Is there any authority one way or the other? Thank you for your comments. I truly appreciate it.

[Guest getaxa]

Need a bit more info but lemme try this one. This person is no longer working, correct?

Then roll the money out of the "Plan" (many 403(b)s do not have plans) into an indiviually owned 403(b) and take distribution similar to an IRA.

If they are still working roll the outside 403(b) money into the active one and there is no need for RMD.

Hope that helps.

[Guest Donaldson]

That's right, the person is retired. So if the person has several 403(b) accounts, she can roll all of the accounts into an individually owned 403(b)? Sort of like a rollover IRA?

What if the individual prefers to keep her accounts with her former employer. Must the employer permit her to take her total RMD from one of the accounts (rather than an RMD from each account) under Treas. Reg. 1.403(b)- Q&A 4? The plan provides that contributions shall be used to purchase annuity contracts but does not otherwise address the issue.

Thanks again for your suggestions.

[mbozek]

The employer has no interest in how the employee takes the MRD because the employee is responsible for MRDs under IRC 403(b)(10). See the annuity contract for the distribution provisions.

[Guest Donaldson]

I will take a look at the annuity contract. Thank you very much for your guidance.