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IRS.gov Website
Publication 571
taxmap/pubs/p571-020.htm#en_us_publink1000239739

Chapter 8
Distributions and Rollovers(p13)

taxmap/pubs/p571-020.htm#en_us_publink1000239740

Distributions(p13)

rule
taxmap/pubs/p571-020.htm#en_us_publink1000239741

Permissible distributions.(p13)

rule
Generally, a distribution cannot be made from a 403(b) account until the employee:
In most cases, the payments you receive or that are made available to you under your 403(b) account are taxable in full as ordinary income. In general, the same tax rules apply to distributions from 403(b) plans that apply to distributions from other retirement plans. These rules are explained in Publication 575. Publication 575 also discusses the additional tax on early distributions from retirement plans.
taxmap/pubs/p571-020.htm#en_us_publink1000239742

Retired public safety officers.(p13)

rule
If you are an eligible retired public safety officer, distributions of up to $3,000, made directly from your 403(b) plan to pay accident, health, or long-term care insurance, are not included in your taxable income. The premiums can be for you, your spouse, or your dependents.
A public safety officer is a law enforcement officer, fire fighter, chaplain, or member of a rescue squad or ambulance crew.
For additional information, see Publication 575.
taxmap/pubs/p571-020.htm#en_us_publink1000239743

Distribution for active reservist.(p13)

rule
The 10% penalty for early withdrawals will not apply to a qualified reservist distribution attributable to elective deferrals from a 403(b) plan. A qualified reservist distribution is a distribution that is made:
taxmap/pubs/p571-020.htm#en_us_publink1000239744

Minimum Required Distributions(p13)

rule
You must receive all, or at least a certain minimum, of your interest accruing after 1986 in the 403(b) plan by April 1 of the calendar year following the later of the calendar year in which you become age 701/2, or the calendar year in which you retire.
Tax Tip
Check with your employer, plan administrator, or provider to find out whether this rule also applies to pre-1987 accruals. If not, a minimum amount of these accruals must begin to be distributed by the later of the end of the calendar year in which you reach age 75 or April 1 of the calendar year following retirement. For each year thereafter, the minimum distribution must be made by the last day of the year. If you do not receive the required minimum distribution, you are subject to a nondeductible 50% excise tax on the difference between the required minimum distribution and the amount actually distributed.
taxmap/pubs/p571-020.htm#en_us_publink1000239747

No Special 10-Year Tax Option(p14)

rule
A distribution from a 403(b) plan does not qualify as a lump-sum distribution. This means you cannot use the special 10-year tax option to calculate the taxable portion of a 403(b) distribution. For more information, see Publication 575.