Non-Spouse Rollover of 401k. Plan does not allow it… yet
If a non-spouse beneficiary inherits a 401(k)… (the parent died in November 2006 and was under 70.5 years old) and the 401(k) plan has not been amended to allow rollovers to “inherited IRA’s”, can you elect the 5 year rule and wait for the plan to be amended in the next five years? When the 401(k) plan does get amending (assuming it does) can you then elect to roll the assets to an inherited IRA and “stretch” the distributions over a lifetime? Or are you committed to the 5 year rule once it’s elected?
Any thoughts?
Permalink Submitted by [email protected] on Thu, 2007-07-26 01:40
Plan does not have to be amended until 2009. If they allow the trasfer, it should be done in time to get the first death rmd out by 12.31.07. Check first to see if they allow the transfer. If they do, client should open an inherited IRA at custodian of choice, and let them go out to the QRP to get the DB. Al
Permalink Submitted by sarah joe on Thu, 2014-11-27 04:37
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