MIL has a couple of years before she hits 70 1/2. She works at a university and asked me recently what I thought she should do once she is forced to start taking minimum distributions from her 403b retirement plan.

She is considering one of two options:

1) she retires and her DH keeps working
2) she continues to work, and her DH also keeps working

In both cases, she really doesnt need the distribution, as her DH will continue to work.

Question to the board:
Is there any way to put off taking the hit on taxes? I am fairly certain that she cant roll over distributions into an IRA, etc, especially as I believe they are above all the limits for traditional IRA anyway. She is already maxing out her 403b.

Barring a roll-over into a tax shelter... Are there conservative, tax-preferential investments to minimize the tax hit? We are open to any other suggestions as well :-)

I have been looking at the retirement boards, but I didnt have any luck finding a similar question.... Thanks in advance!

--k