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?
Permalink Submitted by Alan Spross on Wed, 2008-12-10 23:34
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