Rollover of Husbands Inherited 401(k) to Spousal IRA

Can a wife directly roll her deceased husband’s 401(k) into her existing Spousal IRA?



Yes, but the following issues should be addressed first:
1) If she is under 59.5, IRA distributions will be subject to early withdrawal penalty unless she elects to start a 72t plan. The penalty would not apply to any distributions taken directly from the plan or if she were to transfer the funds to an inherited IRA rather than her own.
2) Any potential for NUA on employer stock is lost.



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