| Account type | Can combine across accounts? | Where can you take the withdrawal from? |
|---|---|---|
| Multiple 403(b)s | Yes | Any 403(b) |
| 457(b) | No | That 457(b) only |
| Traditional IRA | No | That IRA only |
| Roth IRA | No | That Roth IRA only |
How Harbourfront Wealth Management Approaches Required Minimum Distributions from a 403(b)
By the Harbourfront Wealth Management team · Last reviewed · 9-minute read
Required minimum distributions from a 403(b) begin in the year you turn 73 if you were born between 1951 and 1959, or age 75 if born in 1960 or later. The IRS calculates the amount you must withdraw each year using your account balance on December 31 of the prior year and a life-expectancy table. Harbourfront Wealth Management wrote this guide for teachers and public-school employees with a 403(b), a 457(b) or an IRA who want to know when these withdrawals start, how they combine across multiple accounts, and what happens if you miss the deadline.
Many teachers ask: "I have money in three different accounts — which one do I draw from, and do I have to take from all of them?" That question matters, because the answer changes your taxes. A 403(b) RMD can be satisfied from any 403(b) you own, so you can total the amount across all of them and take it from one. A 457(b) RMD is separate and must be calculated alone. An IRA RMD is separate too. Each account has its own deadline and its own calculation, though the money can come from wherever you choose.
Step 1: Check your birth year and find your RMD start date
The year you must start required minimum distributions depends on when you were born. If you turned 73 in the year 2024 or 2025 (born between 1951 and 1959), your RMD starts this year. If you were born in 1960 or later, you turn 75 and your RMD does not start until then. This is a hard deadline set by the IRS — there is no way around it except the still-working exception, which applies only to your current employer's plan if you still work there.
Write down your birth year and the calendar year you turn 73 or 75. That is your RMD year. Your first withdrawal must be taken by December 31 of that year. You cannot split it across two years or delay it to the next calendar year.
Step 2: Gather your account statements from December 31 of the prior year
The IRS calculates your RMD using your account balance on December 31 of the year before you start withdrawals. If you turn 73 in 2026 and must take your first RMD by December 31, 2026, you use your December 31, 2025 balance. Find the statements from that date for every 403(b), 457(b) and IRA you own. If you lost them, contact your plan provider or custodian and ask for a year-end statement.
This matters because the December 31 balance is the number on which the IRS calculation is based. If an account has grown or shrunk, that change is already in the total you see. Do not use current-year performance to estimate your balance — go back to the actual December 31 figure.
Step 3: Learn which accounts combine and which stay separate
Here is where most people stumble: not all accounts follow the same rule. Harbourfront Wealth Management walks through this step because it changes your choices.
If you own multiple 403(b) accounts — say, one from your current school and one from a district where you used to teach — you calculate the RMD for each one but can take the total from any single 403(b). You do not have to withdraw from every 403(b) account. The IRS allows you to add them up.
A 457(b) plan is different. RMDs from a 457(b) are calculated separately and must be withdrawn from that 457(b) account only. You cannot combine it with your 403(b) RMD or take it from your IRA instead. Same rule for IRAs: each IRA is calculated alone and must be withdrawn from an IRA.
If you have a spouse and file taxes jointly, each of you has your own RMD. Your spouse's 403(b) RMD is separate from yours, though your spouse can combine their own multiple 403(b)s.
What happens if you have both a 403(b) and a 457(b): a worked example
Maria teaches high school and has been saving for 27 years. She has a 403(b) with $480,000 and a 457(b) with $120,000. She turns 73 in 2026. On December 31, 2025, her accounts are worth exactly those amounts (hypothetical, round numbers).
Her 403(b) RMD for 2026 is $480,000 divided by 25.5 (the IRS life-expectancy factor for age 73), which is $18,824. Her 457(b) RMD for 2026 is $120,000 divided by 25.5, which is $4,706. The total required is $23,530.
Maria can withdraw the $18,824 from her 403(b) and stop there — she has not touched the 457(b). By December 31, she must still withdraw $4,706 from the 457(b) itself. If she takes all the money from her 403(b) and none from her 457(b), she will miss the 457(b) deadline and owe a penalty.
Now suppose Maria does not need the full amount and prefers to reduce her tax bill. She could take $18,824 from her 403(b) and $4,706 from her 457(b), as required, and deposit the 457(b) withdrawal into a Roth account using the pro-rata rule (if her plan allows conversions). This turns a smaller fraction of her income into taxable income. Harbourfront Wealth Management would look at her tax return, her pension income and her Social Security to estimate whether a Roth conversion makes sense, because converting at age 73 is not automatic — it costs now to save later.
Understanding the IRS calculation and the life-expectancy factor
The IRS publishes three life-expectancy tables. Most people use the Uniform Lifetime Table, which gives a divisor based on your age at the end of the year. At age 73, the divisor is 25.5. At age 74, it is 24.6. At age 75, it is 23.5. The divisor shrinks each year, so your RMD grows, even if your account balance stays flat.
If your spouse is your sole beneficiary and is more than ten years younger than you, you may use the Joint and Last Survivor Table, which has higher divisors. This lowers your RMD. Your plan provider will ask whether you want to use this option. Do not assume it applies to you — it depends on your spouse's age and your plan's rules. Ask before your first withdrawal.
What to do if you are still working at age 73 or 75
If you still teach at the school district that sponsors your 403(b), you may delay RMDs from that plan until the year after you retire. This is called the still-working exception. It applies only to your current employer's plan — if you have a 403(b) from a school where you no longer work, RMDs from that account are due.
The still-working exception does not apply to a 457(b), an IRA or any other account. Tell your plan provider in writing that you want to rely on this exception. Some plans ask for a written election; others require nothing. Ask your HR department or your plan's custodian what they need. The safe move is to send an email before your first RMD deadline and keep a copy for your records. Harbourfront Wealth Management would verify this election was actually made and received, because silence is not protection — a missing RMD is your responsibility, not the plan's.
The cost of a missed required minimum distribution deadline
You miss the December 31 deadline by two months. On February 28, you realize you forgot to withdraw your 403(b) RMD of $18,000. You take the money immediately. The IRS penalty is 25% of $18,000, which is $4,500. If you had a second RMD (say, from a 457(b)) that you also missed, the penalty applies to that amount too.
This penalty is not a fine paid to the IRS on your tax return — it reduces your after-tax income. If you are in the 24% federal tax bracket, the $18,000 withdrawal costs you about $4,320 in federal tax plus $4,500 in penalty, for a total of $8,820. Yes, that means paying tax on the money twice. The IRS recently reduced the penalty from 50% to 25%, but 25% is still real money, and it stings more the longer you wait. Correct it as soon as you realize, because you can ask the IRS to reduce the penalty if you had a reasonable cause — which usually means you caught it and fixed it fast.
How your RMD affects income-based Medicare premiums and Social Security taxation
An RMD is taxable income. It counts toward Medicare's income-related premium surcharge (called IRMAA) and toward the combined income test that determines how much of your Social Security is taxable. If you are trying to keep your income below a certain threshold, an RMD can push you over it in the year you start withdrawals.
A teacher with a state pension, a small Social Security benefit and a large 403(b) can find that a $25,000 RMD tips her IRMAA surcharge from $0 to $84.50 a month (the actual amounts depend on 2024 income, so check with Medicare if you are near a boundary). Over ten years of retirement, that is $10,140 in extra premiums. Before you decide where to take your RMD from, Harbourfront Wealth Management would estimate the tax and IRMAA cost, because the math changes which account to draw from first.
Frequently asked questions about required minimum distributions from a 403(b)
When do I have to take my first required minimum distribution from a 403(b)?
RMDs from a 403(b) must begin in the year you turn 73 if you were born between 1951 and 1959; turn 75 if born in 1960 or later. If you have multiple 403(b) accounts, you can total the RMD across all of them and take it from just one account. However, RMDs from a 457(b) are separate and must be calculated and withdrawn on its own schedule. If you miss the deadline, the IRS penalty is 25% of the amount you should have withdrawn (reduced to 10% for good-faith correction).
What happens if I miss my required minimum distribution deadline?
Yes, if you miss the RMD deadline, the IRS assesses a 25% penalty on the amount not withdrawn (recently reduced from 50%). The penalty is based on the full RMD you should have taken, whether you missed it by one day or the entire year. You can ask the IRS to reduce or waive the penalty if you had a reasonable cause and corrected it quickly, but waiting is risky. The sooner you catch it, the better your chances of a reduced penalty.
Can I delay my required minimum distribution if I'm still teaching?
If you are still working for a school district and that school is your employer, you may delay RMDs from a 403(b) until you actually retire, even after age 73 or 75. This is called the "still-working exception." It does not apply to accounts from an employer where you no longer work. You cannot use the still-working exception for an IRA or a 457(b). Check your plan's rules and tell your provider you plan to rely on this exception in writing.
How does a spouse or beneficiary change my required minimum distribution amount?
Your RMD is calculated by dividing your account balance on December 31 of the prior year by a life-expectancy factor the IRS publishes. If your spouse is more than ten years younger and is named as your beneficiary, you may use a different (lower) life-expectancy factor, which means a smaller annual RMD. For a couple, each account holder calculates their own RMD separately. Talk to your plan provider or a tax advisor about whether this exception helps your situation.
What Harbourfront Wealth Management checks first in your accounts
Harbourfront Wealth Management starts by listing all your 403(b), 457(b) and IRA accounts and their December 31 balance from the year before your first RMD is due. We verify the still-working exception applies (if you claim it) and confirm your plan allows it. We then calculate each account's RMD and show you which account to withdraw from to minimize taxes, IRMAA surcharges and the number of taxable events in your portfolio.
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This material is general information only and does not constitute investment, tax or legal advice tailored to your circumstances. Investing involves risk, including possible loss of principal. Consult a qualified professional before making financial decisions.