4076 / How are distribution requirements from a tax sheltered annuity satisfied if an individual has more than one tax sheltered annuity?

If an individual has more than one tax sheltered annuity, each must meet the requirements separately. However, after determining the required minimum for each 403(b) annuity separately, the amounts may be totaled and the total taken from any one or more of the annuities.

Only amounts that an individual holds as a participant may be aggregated under this rule. If an individual account holder is also the beneficiary of the tax sheltered annuity of a decedent, the required distribution from that account may not be aggregated with amounts required under contracts held by the individual for purposes of meeting the distribution requirements.¹

1. Treas. Reg. § 1.403(b)-3, A-4; Prop. Treas. Reg. § 1.403(b)-6(e)(7).