IRA rollover to 403B to prevent RMD

Question

I turned 72 this June, so my traditional and SEP IRA accounts will be subject to RMDs starting next year. Since I’m still working, my 403(b) account isn’t subject to RMDs. I was hoping to roll over my IRA accounts into my 403(b) to avoid the RMD requirement. However, Fidelity, where my 403(b) is held, informed me that my plan doesn’t allow rollovers from IRAs.

I’m trying to understand why some 403(b) plans allow such rollovers while others don’t. Is it a matter of plan design, and is there anything I can do about it? Also, are there any other ways to avoid taking RMDs from my IRAs?

Answer 1

I’m trying to understand why some 403(b) plans allow such rollovers while others don’t

Because there's no legal requirement to allow such rollovers, and no legal requirement to prohibit. So it's up to the plan. Some allow, some don't. Usually depends on the plan sponsor and administrator - what they're willing to support and what they're willing to pay for.

is there anything I can do about it?

Talk to your employer's benefits department whether they would agree to support that.

Also, are there any other ways to avoid taking RMDs from my IRAs?

No. The "R" in RMD stands for "Required". If you're OK with the tax hit and just don't want to take out the retirement money - you can try and convert to Roth IRA.