Rollover; non-spouse beneficiary of qualified plan
Decedent died after RBD with a 401k; he had been receiving MRD’s yearly. The beneficiary of his 401k is his revocable trust. All the assets of the revocable trust are to be distributed to his 2 daughters (spouse is pre-deceased).
Can a 401k be rolled over to an IRA where a trust is the beneficiary?
If yes; would the IRA need to be titled in the name of the trust or could it be titled as “inherited IRA, childs name”?
Thank you in advance for any thoughts.
Sue
Permalink Submitted by [email protected] on Tue, 2007-07-24 21:54
Decedent died after RBD with a 401k; he had been receiving MRD’s yearly. The beneficiary of his 401k is his revocable trust. All the assets of the revocable trust are to be distributed to his 2 daughters (spouse is pre-deceased).
Can a 401k be rolled over to an IRA where a trust is the beneficiary?
If yes; would the IRA need to be titled in the name of the trust or could it be titled as “inherited IRA, childs name”?
Thank you in advance for any thoughts.
Sue
It is too bad he didn’t change bene to the daughters directly, since that’s where it will go anyway. If the QRP plan allows it, the DB can be transferred to an inherited IRA. I believe the title would be “John Smith Trust dated 01.01.1994 as bene of John Smith”. The RMDs will be based on oldest daughter’s age. If trust is terminating, it may take a court order to have the IRA divided and re-titled to each daughter. The youngest daughter, however would have to use the odest’s DOB. Al