How do you figure out the distribution schedule for a 403(b)invested w

[Guest LindseyA]

How do you figure out the distrubtion schedule for a 403(b)invested with Fidelity in mutual funds. Fidelity doesn't seem to know

[Dave Baker]

From IRS Publication 571:

You must receive all, or at least a certain minimum, of your interest accruing after 1986 in the TSA plan by April 1 of the calendar year following the later of the calendar year in which you become age 70 1/2 or the calendar year in which you retire.

Check with your employer, plan administrator, or provider to find out whether this rule also applies to pre-1987 accruals. If not, a minimum amount of these accruals must begin to be distributed no later than the end of the calendar year in which you reach age 75. For each year thereafter, the minimum distribution must be made by the last day of the year. If you do not receive the required minimum distribution, you are subject to a nondeductible 50% excise tax on the difference between the required minimum distribution and the amount actually distributed.

For more information on minimum distribution requirements and the additional tax that applies if too little is distributed each year, see Publication 575.

Some information (but not a great deal) about the calculation of minimum distributions is contained in Publication 575 ... see http://www.irs.ustreas.gov/prod/forms_pubs...pubs/p57507.htm

Best bet is to have an accountant or attorney take responsibility for making the calculations for you, unless you enjoy really getting your hands dirty on this sort of thing.

Also, the "big picture" is that you're supposed to follow the terms of your particular custodial account (which has been reviewed by the IRS or at least has been designed by Fidelity to fall under the rules set out in section 403(B) of the Internal Revenue Code, including the minimum distribution requirement). Those terms might be quite specific, or they could be fairly liberal and merely refer you to the statute and regulations for the various ways that the minimum distribution requirement can be met.