inherited 401k
I inherited my sons 401k. He was 29 when he passed i’m 50 yr old whats my options. Set up a properly title herited ira?. can the rmd be stretched for the younger person? Thanks
I inherited my sons 401k. He was 29 when he passed i’m 50 yr old whats my options. Set up a properly title herited ira?. can the rmd be stretched for the younger person? Thanks
Permalink Submitted by Alan - IRA critic on Sat, 2018-09-08 22:13
If you do a direct rollover to an inherited IRA, it can be either an inherited TIRA or an inherited Roth IRA. Either way, your annual RMDs must be based on your age, or you are eligible for the 5 year rule which is not advisable. You cannot base it on your son’s age because he passed prior to his required beginning date. An inherited IRA will give you and your successor beneficiary more control than leaving it in the 401k plan, but neither the inherited IRA or inherited 401k will have any creditor protection per Supreme Court case Clark v. Rameker,