Individuals who have more than one 403(b) account (or more than one IRA account) may satisfy the required minimum distribution (RMD) requirement for that plan type or retirement account type from any like accounts, however RMD calculations must be done separately for each account. This assumes that the 403(b) plan permits RMDs to be satisfied by aggregating the like account values. RMDs for one plan type cannot be satisfied by taking RMDs from another plan type.
For example, the RMD for a 403(b) account cannot be satisfied by taking a distribution from an IRA, or vice versa. However, each individual 403(b) annuity contract and custodial account holder can individually calculate the RMD account for that contract and then take the sum of the RMD calculations from all 403(b) accounts or from one or more of the 403(b) annuity contracts or custodial accounts.
Editor’s Note: This is an occasional feature in the NTSA Advisor. It is drawn from The Source, a book that covers technical, compliance, administrative and marketing aspects of the 403(b) and 457(b) markets. More information about The Source is available here.
- Log in to post comments
The real travesty in our business is that “fees” are hidden from clients. A brokerage firm may tout no fees yet requires a minimum cash position that yields next to nothing and then lends that money out at double digit rates with no benefit to the client. Then there is the surreptitious markups of bond trades to impose a steep fee on clients. While RIAs are held to strict disclosure standards, clients can never figure out the fees charged by annuity vendors, lawyers, and accountants who face little if any regulation.