IRS Pan Amendments
From the IRS Website, confirming earlier posts:
§ 402(c)(11) [Discretionary]:
PPA ’06 § 829(a)(1) added § 402(c)(11) to allow nonspouse beneficiaries to roll over distributions from a qualified plan to an individual retirement plan. Nonspouse beneficiary rollovers are an optional plan provision for 2007. See, Notice 2007-7. Pursuant to an impending technical correction, nonspouse beneficiary rollovers will be required for plan years beginning on or after January 1, 2008. See, section 9(e) of S. 1974, the Pension Protection Technical Corrections Act of 2007, as introduced in the Senate on August 2, 2007 and section 9(e) of H.R. 3361, the Pension Protection Technical Corrections Act of 2007, as introduced in the House of Representatives on August 3, 2007
Permalink Submitted by Janine Janine on Wed, 2007-08-29 13:13
Please clarify for me. If I die on or after January 1, 2008, my son would be able to rollover my IRA to his own instead of starting to take the RMD by 12/31 of the year following my death?
Thank you very much.
Mary
Permalink Submitted by [email protected] on Wed, 2007-08-29 14:15
No. A non-spouse can never do a rollover from an IRA. The term “rollover” in the post is referring to a “Direct Rollover” from a qualified plan to an inherited IRA. In either case the non-spouse bene will end up with an inherited IRA and must start distributions by 12/31 in the year following death. It would be nice if the IRA, Congress, or the industry would not have two different definitions for the term “rollover”.