401(k) RMD
FACTS:
An 401(k) participant (actively employed), 72, died in 2014
participant was not a 5% owner
Non-spouse named 100% primary beneficiary
I am aware 401(k) RMDs can be deferred till the later of 70 1/2 or year of retirement assuming the participant is not a 5% owner. What happens in the case of death?
Question
Does the non-spouse beneficiary need to take a 2014 RMD?
Thank you in advance
Brian
Permalink Submitted by Alan - IRA critic on Mon, 2014-06-09 19:09
Beneficiary does not need to take a 2014 RMD as participant passed prior to their RBD. If the participant had retired this year, he would have to complete a 2014 RMD, but death of the participant is subject to different rules. Beneficiary’s first RMD is due no later than 12/31/2015 based on 12/31/2014 balance. And if beneficiary chooses to transfer the inherited plan to either an inherited TIRA or inherited Roth IRA before year end 2014, they can do so without taking an RMD.