transfer 403b TIAA/CREF account to children as gift
I have a client that has over 1million in his TIAA/CREF 403b account. He thinks he can do one time gift of 1million w/o tax to his kids? Can He? jg ❓
I have a client that has over 1million in his TIAA/CREF 403b account. He thinks he can do one time gift of 1million w/o tax to his kids? Can He? jg ❓
Permalink Submitted by Alan Spross on Tue, 2008-03-04 00:00
No, I wonder where he got that idea. Even if he passes and the children are the beneficiaries, the distributions will be taxable as RMDs are taken. If the plan does not allow the non spouse rollover, he should transfer it to an IRA in order to improve the ability of the children to use their own life expectancies for RMD purposes.
If he takes distributions and pays taxes now, he can then gift only 12,000 per year to each child without incurring gift tax on top of the income tax.