Inherited ESOP Spouse
A spouse is inheriting an ESOP plan that includes non-publicly traded stock. We were told that if she exercises the put and takes a lump sum, that she will still qualify for a rollover into her own IRA.
Does this sound correct?
Thanks for your help.
Permalink Submitted by Alan Spross on Fri, 2012-09-28 22:57
Yes, it is correct. An ESOP is a qualified retirement plan and eligible for rollover. Better to have a direct rollover done to avoid withholding.
Spouse should also look into the possibility of using NUA if the cost basis of the shares are low enough.
http://www.nceo.org/articles/esop-participant-distribution-rules