Non-spouse retirement plan death benefit rollover
Female client has State of Florida FRS retirement plan. She actually received this as a beneficiary of her ex-husband. She received this after they were already divorced and then he died. She has not taken any distributions from the plan and has not rollover any money to an IRA. She just received a notice that the 5 year anniversary year of his death. The notice says that the client has to take a full distribution and cannot roll funds out as she is in the 5th year of the plan. The plan is telling us that not being able to roll in the 5 year is an IRS rule and they will not allow it. Questions:
1. Where is this stated in the IRS rules that you cannot roll in year 5?
2. Is there anyway to go back on this 5 year benefit and take withdrawals to satisfy the beneficiary RMD requirements?
Permalink Submitted by Alan - IRA critic on Thu, 2020-01-30 23:22
Permalink Submitted by Ryan Smith on Tue, 2020-02-04 13:26
Death was before RBD, client was notified, so she has to take it all out then. Thanks.
Permalink Submitted by Ryan Smith on Tue, 2020-02-04 13:26
Death was before RBD, client was notified, so she has to take it all out then. Thanks.