Bene 401k & Bene IRA Question
John was Bob’s father and died in January (age 80).
John had a 401(k) and a Traditional IRA. Bob is a 1/3 named beneficiary of both accounts.
John’s 401(k) sponsor transferred the funds into a Beneficiary 401(k) when they received John’s death certificate.
Can Bob transfer (combine) both the Beneficiary 401(k) funds and his share of John’s original Trad. IRA into one BENEFICIARY IRA in Bob’s name?
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2021-04-27 14:54
Yes, since both inherited from the same decedent-owner and will both be subject to the 10 year rule. The beneficiaries collectively are responsible for completing John’s 2021 year of death RMD if it was not completed. The 401k plan will distribute that to the beneficiaries, most likely in equal shares, before distributing a direct rollover to the inherited IRA. The beneficiaries have until year end to complete the IRA year of death RMD.