do 403b/401k have stretch capabilities like the IRA’s to non spouse
Client has two 403b, recently widowed and has 3 grown children
Am I correct in telling him that he has no stretch capabilities with the 403b’s/401k?
or
do the 403b/401k now offer stretch capabilities to non-spouses?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Fri, 2016-04-29 18:40
IRS Regs allow the same beneficiary RMDs as for IRA accounts, but a 403b plan could contain a 5 year rule provision for deaths prior to the RBD. In such a case a direct rollover to an inherited IRA must be done by the end of the year following the year of participant’s death to preserve life expectancy RMDs for a non spouse beneficiary. It is up to the individual plan to either follow the IRS Regs or adopt a more restrictive set of rules for non spouse beneficiaries.