Qualified Plan to Inherited IRA
Isn’t it now a requirement that defined benefit plans allow non-spouse beneficiaries the option of transferring their funds to inherited IRAs? No money involved, but in a friendly dispute with a colleague.
Isn’t it now a requirement that defined benefit plans allow non-spouse beneficiaries the option of transferring their funds to inherited IRAs? No money involved, but in a friendly dispute with a colleague.
Permalink Submitted by Alan - IRA critic on Fri, 2014-08-08 22:08
Yes, it is. Per Sec 108(f) of WRERA signed 12/2008. Effective for plan years starting after 12/31/09.
Permalink Submitted by Bob Foland on Mon, 2014-08-11 15:50
To clarify, this is a requirement for all plans as of 2010, not just for plans that were started in 2010 and later, correct?
Permalink Submitted by Alan - IRA critic on Mon, 2014-08-11 16:32
Correct. For all plans but effective in the plan year that first starts after 2009. For example, if a plan year was 7/1 to 7/1 (rare), then the mandatory direct rollover would be effective 7/1/2010.