401(k) Spousal Rollover
H dies several years ago with W as bene of 401(k). Plan allowed a stretch to spouses, which she elected. She now wants to roll it to an IRA to get a better distribution table. Is this possible, or are we at the mercy of the plan language?
Permalink Submitted by Alan Spross on Tue, 2007-10-16 19:44
Al,
I believe that the surviving spouse has a right to roll over the balance in excess of the RMD, ie the eligible rollover distribution per the 402f notice and have it done by direct transfer under 401a(31). Page 26 of Pub 590 refers to this notice without reference to 402f.
That said, if the survivor wants the transfer to be done to an inherited IRA rather than their own, there could be a problem because the code has not been changed to reflect PLR 2004 50057, and neither has the 402f notice. This is the item that perhaps could be in the TCA, but I am not sure legally if it qualifies for TCA since the spousal transfer to an inherited IRA did not originate with the PPA, but with the referenced PLR.
Permalink Submitted by Al Fry on Tue, 2007-10-16 20:33
She is now over 59 1/2, so want to go to her own. TKU.