401k inherited roth ira opportunity
I have a young client age 20 who is a beneficiary of his mother’s 401k held at vanguard. I’m under the impression that he can take the 401k as a beneficary in either a Traditional IRA or a ROTH IRA is that true? Vangurad indicates that you can not? which is correct?
Permalink Submitted by Alan Spross on Wed, 2010-11-17 01:02
You are correct. He can convert to an inherited Roth IRA or transfer to an inherited TIRA. You probably got the wrong person at Vanguard, and should take this up with someone else there. Perhaps they thought the question involved a rollover to his own IRA, which of course cannot be done.