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Posted

Dr. turning 70.5 in August, 2007

Dr. Works for teaching hospital... receives W-2 (assuming a 403b... not my client)

Also owns practice where he is a 50% owner.

As long as he is still employed by the hospital and receives a W-2 he does not have to take a RMD. The practice of which he is a 50% owner he does... correct?

Thanks

Its not easy being green

Posted

Correct that he would have an RMD with regards to the 50%-owned practice's plan (and any IRAs he might have). As to the hospital's plan, he may not have an RMD per se so long assuming he does not own (nor is deemed to own) 5% or more of the hospital and has not for the last 5 years. However, the terms of that plan may require payout anyway.

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

Posted

Why cant the Dr rollover the funds from the Drs practice plan to the 403(b) plan by 12/31/07and avoid MRDs for all yrs after 07?

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