Required Minimum Distributions-Exceptions

Exceptions for 403b accounts 
Some amounts may not need to be distributed until age 75 

You must receive all, or at least a cer­tain min­i­mum, of your inter­est accru­ing after 1986 in the 403(b) plan by April 1 of the cal­en­dar year fol­low­ing the lat­er of the cal­en­dar year in which you become age 70½ or the cal­en­dar year in which you retire, ther amount to be tak­en is cal­cu­lat­ed from the IRS pub­lished RMD tables.

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 by the lat­er of the end of the cal­en­dar year in which you reach age 75 or April 1 of the cal­en­dar year fol­low­ing retire­ment, whichev­er is lat­er. 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. 

Pre-1987 mon­ey can stay in the plan until your client reach­es age 75. But if he/she rolls over pre-1987 403(b) funds to an IRA, the “grand­fa­thered” sta­tus is lost. 

Roth IRAs

There are no required dis­tri­b­u­tions from Roth IRAs by the own­er or their spousal beneficiary 

If you’re still working at age 70 12

If you are still employed at age 70 12 and do not own 5% or more of the com­pa­ny you work for, then you can delay tak­ing any with­drawals from your qual­i­fied plan or 403(b) until April 1 of the cal­en­dar year after the cal­en­dar year you retire. You must still cal­cu­late and take an annu­al RMD for oth­er tax-deferred retire­ment accounts each year after you turn age 70½.