inherited 401k from sibling
if there is an inherited 401k form a sibling, and it is still with the employer,. what is the ruling on claiming the RMDdistributions, and when is the time line to request that option?
if there is an inherited 401k form a sibling, and it is still with the employer,. what is the ruling on claiming the RMDdistributions, and when is the time line to request that option?
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Permalink Submitted by Alan - IRA critic on Thu, 2017-06-08 20:07
If the participant passed prior to the RBD, most plans that use life expectancy as the default method will allow the beneficiary to elect the 5 year rule if such election is made no later than the end of the year following the year of the participant’s death. While rare, some plans may require use of the 5 year rule. If the 5 year rule is not applicable, the first LE RMD must be taken by the end of the year following the participant’s death. If participant passed on or after the RBD, the life expectancy method will always apply.