Q. Are 403(b)s subject to the new 10-year rule established in 2020 for death benefits moved into an inherited IRA on behalf of a non-spouse beneficiary (assume the beneficiary is at least 18 years of age)?
A. The new required minimum distribution (RMD) rules for beneficiaries are generally effective for deaths after Dec. 31, 2019, which includes IRAs, QPs, 403(b)s and 457(b) plans. But for governmental plans, the effective date is for deaths after Dec. 31, 2021. So if the 403(b) is for a public school, then the new rules are not effective yet, and the same holds true for a governmental entity that establishes a 401(a) or a 457(b) plan. So for nongovernmental employers, the answer is yes, the new rules applied starting for deaths after Dec. 31, 2019; for governmental employers they will apply for deaths after Dec. 31, 2021.
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