spousal benficiary
Husband died it 2017 prior to age 70.5 and had 401k thru employer with his wife as sole beneficiary. If the wife leaves the account in deceased husbands name at employer will she be subject to the 5 yr distribution rule? Are there any negative ramifications if she does nothing?
Permalink Submitted by Alan - IRA critic on Wed, 2018-10-31 23:00
Unlike an IRA, the 401k plan could contain provisions under which the 5 year rule applied if wife did nothing. If there is such a rule she would have to make an election for life expectancy RMDs (or roll it over to her own IRA or inherited IRA) by the end of 2018. Not knowing the plan provision, if she does nothing she is taking a chance.