Sons inherit father’s 401K
It is my understanding that if a non-spouse inherits a 401k they have the ability to roll into a beneficiary IRA and stretch it, is that correct?
It is my understanding that if a non-spouse inherits a 401k they have the ability to roll into a beneficiary IRA and stretch it, is that correct?
Permalink Submitted by Alan Spross on Wed, 2012-08-08 00:46
Correct.
To insure that life expectancy RMDs can be taken in the IRA in all cases, the transfer must be done no later than 12/31 of the year following the father’s death.
Son also has a choice between an inherited TIRA or an inherited Roth IRA (RMDs required either way).
Assumes son inherited directly, not through an estate.
Funds can only be moved by direct trustee transfer.
Permalink Submitted by Eric Woodfill on Wed, 2012-08-08 00:50
thank you very much