I will be 70½ this year and am still working and contributing to a 403(b) plan. Can I wait until I retire to start taking minimum distributions?

I will be 70½ this year and am still working and contributing to a 403(b) plan. Can I wait until I retire to start taking minimum distributions?

For 2009, there are no required minimum distributions from qualified retirement plans (such as a 403(b) or 401(k) plan) or IRAs. Usually, you would have to take your second required minimum distribution in 2010 (when the suspension of the distribution requirements no longer applies). However, if the plan allows it, you can postpone required minimum distributions (RMDs) until retirement; check with your plan administrator on whether the plan allows you to postpone RMDs until retiring from your job.

Two points of caution:

• Owners with a more than 5% interest in the capital or profits of their businesses cannot postpone their RMDs until retirement (with the exception of 2009, when all RMDs are suspended).
• Those with IRAs have to take RMDs starting in 2010, regardless of employment status.