Suppose client is 73 and a participant in a Profit Sharing Plan at his company. Wife is primary beneficiary (assume similar age) and 3 children 1/3 back-up beneficiaries. Client passes away. I just want to confirm the following:

1. Wife has the option of keeping the funds in the Profit Sharing Plan or rolling them into her IRA. If kept in the Profit Sharing Plan does she have the ability (as a spouse would if this were an IRA) to either become the owner or inherit the Profit Sharing Plan as the beneficiary?

2. When wife passes away, and assume the monies remain in the Profit Sharing Plan, each child becomes a 1/3 owner. If it were in an IRA, they would split the shares and title new Inherited IRAs and make the appropriate 1/3 transfers.

A. If the funds remain 100% in the Profit Sharing Plan, would each beneficiary title their Inherited Profit Sharing Plan account as they would if it were in an Inherited IRA?

B. I assume 1 or more children may roll the Profit Sharing Plan into their own Inherited IRA, with 1 or more children retaining the funds in the Profit Sharing Plan thru some type of Inherited Profit Sharing Plan (as per A). Is this correct?

C. Irrespective of whether the 3 children retain the funds in the Profit Sharing Plan or roll the funds into their own Inherited IRAs, they must take RMDs by 12/31 of the year following their mother’s death based upon the mother’s Single Life Table since she was the primary beneficiary. Is this correct?

Thank you!

Jason