457 spousal rollover after owner has begun RMD
I need help.
Scenario: client dies at age 75, his beneficiary is his wife who is 55 yrs old. He has been taking RMDs. I want to rollover the 457 to beneficiary IRA so that she can take RMDS until her age 59 1/2 and then roll it over to her IRA.
American funds (custodian) on where I want to move it to will not allow it, even after I have sent them the information from the 457 provider that states the beneficiary rollover is permitted. What am I missing?
Anyone has suggestions as where to go next?
Permalink Submitted by Alan Spross on Mon, 2008-06-23 20:32
A rollover is not permitted for a non govt 457, but should be for a government 457b.
So if this is a govt 457b, then the resistance may be coming from the fact that the rollover to a spousal inherited IRA is not yet officially in the IRS Regs, and depends on various PLRs, notably PLR 2004 50057. If you still cannot convince them, you may have better luck trying another custodian. There are many that will accept such a rollover.
It does seem odd that the PPA provides for a non spouse rollover, but the technical corrections bills in Congress seem blind to the fact that this gap exists in the Regs that make spousal provisions more restrictive. Many custodians are comfortable with accepting the rollover, but again it must come from a GOVT 457b.
Permalink Submitted by [email protected] on Mon, 2008-06-23 21:06
thanks – it is a govt 457 plan. Do you know of any custodians that will accept this type of rollover?
Permalink Submitted by Al Fry on Tue, 2008-06-24 03:31
Most all should. If you want specifics, email me.