Deferred Comp
Client keeps Deferred Comp $ at company and dies will the beneficiaries have the ability to stretch the payments or would it be better to move the $ into an IRA for beneficiary purposes?
Client keeps Deferred Comp $ at company and dies will the beneficiaries have the ability to stretch the payments or would it be better to move the $ into an IRA for beneficiary purposes?
Permalink Submitted by Alan - IRA critic on Mon, 2015-01-26 23:39
Is this a governmental 457b? A non govt plan cannot be rolled over to an inherited IRA. What was the date of death and age at death?
Permalink Submitted by [email protected] on Tue, 2015-01-27 17:03
this is the school district of Ohio plan. The client is still alive, we are discussing the rationale for her to get the money out of the state plan and move to an IRA.
Permalink Submitted by [email protected] on Tue, 2015-01-27 17:07
Correction it is a 403B
Permalink Submitted by Alan - IRA critic on Tue, 2015-01-27 17:50
Beneficiaries should be able to stretch the RMDs from the 403b or from an inherited IRA. If the plan requires the 5 year rule however, it is critical to complete a direct rollover to an inherited IRA by the end of the year following the owner’s death in order to be able to substitute life expectancy RMDs.