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403(b) rollover to avoid RMD


Guest moosegirl

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Guest moosegirl

Client is a professor, age 71, and still employed at a school with a 403(b) plan (Plan A). She has several other 403(b) accounts with balances from schools where she was previously employed (Plans B&C). In order to avoid additional required minimum distribuitons, she is considering rolling over the balances from B&C into A. An investment advisor told her that she can open a new custodial account to receive the B&C balances and as long as the account is styled as a 403(b) of the school where she is currently employed, there is no RMD from the account. The investment choices would be different from those currently offered in plan A. Is this correct?

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MRDs are based on account balance at end of prior year. If account balance in 403(b) annuity account of a former employer at the end of year is 0 then no mrd is required. However, 403(b) account balance must be rolled over to a 403(b) annuity account under current employer's plan.

mjb

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