Client is a professor, age 71, and still employed at a school with a 403(b) plan (Plan A). She has several other 403(b) accounts with balances from schools where she was previously employed (Plans B&C). In order to avoid additional required minimum distribuitons, she is considering rolling over the balances from B&C into A. An investment advisor told her that she can open a new custodial account to receive the B&C balances and as long as the account is styled as a 403(b) of the school where she is currently employed, there is no RMD from the account. The investment choices would be different from those currently offered in plan A. Is this correct?

MRDs are based on account balance at end of prior year. If account balance in 403(b) annuity account of a former employer at the end of year is 0 then no mrd is required. However, 403(b) account balance must be rolled over to a 403(b) annuity account under current employer's plan.