Decedent 401k to Roth Conversion
i have a client whos dad passed away with a 401k… estate listed as beneficiary (i know .. dumb).. custodian distributed a check to my client.. payable to her (via will distribution)…
Can she put that in a Roth Conversion account? i know i am reaching but thought maybe this is possible!
Permalink Submitted by Alan Spross on Thu, 2008-12-11 23:29
I doubt if this can be done, but there are some inconsistencies between Notice 2007-7 which requires a direct rollover to a designated beneficiary’s inherited TIRA, and Notice 2008-30 which allows indirect rollovers to an inherited Roth IRA without mentioning whether the beneficiary must be designated or not.
I doubt that an estate beneficiary will be allowed to open an inherited TIRA or Roth IRA for this purpose, particularly since the original distribution was to the estate.
But due to the current inconsistencies in the Regs, this is only a guess on my part, and the 60 day clock is ticking away on your client.