Non Spousal Beneficiaries Inheriting assets from a PSP

Has there been a final ruling that states children can inherit the assets that are in a 401k Profit Sharing Plan and be able to roll those assets over into an IRA and take RMD’s on their life expectancy?



A plan is allowed to offer a non spousal beneficiary a transfer to an inherited IRA account. However, at this point this is still optional for a plan to adopt. There has been discussion about making the transfer mandatory.

The current guidelines are outlined in the att’d link. Scroll to Sec 829:

http://benefitslink.com/IRS/notice2007-7.pdf



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