Which Suffolk Community College deferred account withdrawals can be stretched for non-spouse beneficiaries?
My husband has in his Suffolk Community College retirement account three separate sub-accounts.
The RA is money deposited by the college as a percentage of his salary. None comes from his salary directly.
The GSRA is essentially a 403b deposited before taxes and withdrawn from his salary.
The IRA was rolled over from the before-tax money in a previous retirement plan.
If he dies after me, and has named our daughters as his beneficiaries, for which of these accounts can our daughters STRETCH their withdrawals from the accounts based on their own life expectancies? How must they title the inherited accounts to make this legal?
Permalink Submitted by Alan - IRA critic on Fri, 2013-02-01 17:38
Your request is very plan specific, so you should secure such information from the college HR Dept. That said, an inherited non spouse 403b contract can be transferred to inherited IRA accounts for each beneficiary and this should be done no later than 12/31 of the year following his death to be sure each is able to use their own life expectancies for RMDs. The inherited IRA must be titled according to the processing requirements of the IRA custodian, but the title must include the name of your husband as decedent and the name of the beneficiary. If the “IRA” account was formerly an IRA and now part of the 403b, the same applies to that. If the RA is one of the NYS teachers retirement system plans, my guess is that only a one time death benefit lump sum applies. But am just guessing here, so suggest you verify this with the college. There can be several variations to some of these plans from the norm.