Dad inheriting Mom's TDA(403B)

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jayboss
Posts: 46
Joined: Sat Nov 17, 2012 6:53 pm

Dad inheriting Mom's TDA(403B)

Post by jayboss »

Hi,

Unfortunately my mom is unwell and in all likelihood, my dad(75 years old), will eventually be inheriting her NYC teacher TDA. This is very similar to a 403B and is the famous, "fixed 7%" TDA.

He is under the impression that he will have to convert this to a ROTH IRA immediately and pay all taxes due at once, but this doesn't seem right to me.

Has anyone had experience with this before? It seems he will need to take it in a lump sum, but I'm not sure if a Roth or Traditional IRA makes sense.

For info, he does not have an IRA of his own. He will have my mom's pension and SS as well.

Thanks very much. Sorry I don't have more information regarding this.
GreendaleCC
Posts: 1087
Joined: Sun Dec 22, 2019 2:24 am

Re: Dad inheriting Mom's TDA(403B)

Post by GreendaleCC »

You have my condolences. There’s a phone number for questions in the plan’s survivor guide. Hopefully they can provide more concrete guidance.

https://www.trsnyc.org/memberportal/Web ... Brochure65
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Sandi_k
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Joined: Sat May 16, 2015 11:55 am
Location: SF Bay Area

Re: Dad inheriting Mom's TDA(403B)

Post by Sandi_k »

He's wrong. There is never a requirement to convert to a Roth from a 403(b).

He will have required minimum distributions, if at the RMD age. Has your mom taken hers for the year?
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Stinky
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Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Dad inheriting Mom's TDA(403B)

Post by Stinky »

This FAQ section might be of use to you and your dad. https://www.trsnyc.org/memberportal/FAQ ... eficiaries

And, as mentioned, Dad will not be required to convert to a Roth IRA and pay all taxes due immediately.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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