inherated non-qual$
client recieved N Q $ at father’s death–transferred to nationwide anniuity choosing 5 year distribution.—nationwide says “irs requires N Q funds to be completely distributed within 5 yrs of the date of your loss”–is this statement correct for inherated non-qualified $ ???
Permalink Submitted by Alan Spross on Fri, 2007-09-28 01:59
No. IRS rules allow distributions over the non spouse beneficiary’s single life expectancy as long as this is elected prior to 12/31 following the year of death. This is the same as the IRA rules. However, a particular insurance company may not offer the life expectancy distribution, but it is them and not the IRS that restricted the options.