457 as an inherited IRA
One of our clients, age 68 just passed away and left her 457 plan to her 18 year old grandchild as the only beneficiary. The 18 year old has been advised, by another advisor to place the asset into his own IRA in his name and no RMD’s are due. I see many issues with this, but wanted to hear from the group.
Permalink Submitted by Al Fry on Tue, 2008-10-21 21:16
Is this a 457(b) Governmental? Regardless, the other advisor should check his E & O coverage!
Permalink Submitted by Alan Spross on Tue, 2008-10-21 23:35
A non spouse beneficiary can never assume ownership of a retirement account or avoid RMDs. They must take RMDs as a beneficiary or drain the account within 5 years.