topic Re: RMD in Retirement tax questions

RMD

zenzulu — Tue, 24 Feb 2026 06:52:50 GMT

I work at a state University and i participate in a 403b plan and a voluntary investment plan (which includes both a Roth and a pre-tax component) sponsored by the employer. I just retired at the end of June and i am 73 yo. But i will be working part time for the rest of the year at the same University. I was told that i could continue to contribute to the VIP plan (not the 403b) as long as i am working. But, do i have to take RMD from either or both University sponsored plans (i.e. the 403b and the pretax portion of the VIP) when i am still working part time? If so, when do i have to take it (before 4/1/24)? Thanks

Re: RMD

Katherine S 63 — Wed, 26 Jul 2023 16:17:09 GMT

Hello,

Great questions!! The age for RMDs keep changing lately depending on when you were born.

The minimum amount you must withdraw from your SEP/SIMPLE/traditional IRA (not a Roth IRA), 401(k), profit-sharing, 403(b), or other defined contribution plan each year is called your Required Minimum Distribution (RMD).

If your 70th birthday is July 1, 2019 or later, you don’t have to take withdrawals until you turn 72.

You must start taking your RMD by April 1 of the first calendar year after either of these scenarios, whichever happens last:

You turn 70½ if you were born before July 1, 1949 or you turn 72 if you were born after June 30, 1949
You retire from employment with the employer maintaining the plan

However, the plan may require you to begin receiving distributions by April 1 of the year after you turn 72, even if you haven't retired.

If you delay the first distribution until the following April 1, you'll have two distributions that year, as the second distribution is due by December 31.

You can avoid including income from both of these distributions in the same year if you take your first RMD withdrawal by December 31 of the year you actually turn 72.

I got this information from a wonderful Turbo Tax article: https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/required-minimum-distribution-reach-age-72/L9B6f7Jia_US_en_US

I recommend that you click on this link or copy and paste it to a browser.

Please reach out again if you have futher questions.

Katie S.

Re: RMD

zenzulu — Wed, 26 Jul 2023 16:34:08 GMT

Thank you for your quick and informative reply. The part that confuses me is whether my continuing working part time (with the same employer after my retirement this year) will allow me to delay taking the RMD from either my 403b plan or the employer sponsored voluntary investment plan. I was told by some that i don't have to take RMD as long as i am still employed by the same employer (even part time after i am formally retired). Is that correct? Don't want to be penalized if i don't take the RMD when i am supposed to... Thanks!