Hi – My client’s sister died 5 and a half years ago, in May, 2003 and my client received sister’s small ($7000) 401k in Oct of that year. Client left 401k where it was, and just called me last week thinking she needs to do something with it by the end of this month.
What are her options, and what is the real deadline?
Should she have included worth of this 401k when she figured her RMDs?
I’m thinking that at this point she needs to cash it out and can’t roll it over to an IRA – is this correct?
I know rules about non-spousal inherited IRAs have changed, but I’m assuming that doesn’t matter here since sister died in ’03.
Thanks for any help you can give!