Qualified Plans and Life Expectancy Distributions
I believe I recently read in one of Ed’s newsletters that 401(k) and other qualified plans must allow non spouse beneficiaries the right to distribute an inherited plan over their life expectancy. First, did I read correctly and second, when does this rule take effect? Thanks!
Permalink Submitted by mk foss on Sun, 2009-03-29 22:46
Qualified plans must allow nonspouse beneficiaries to rollover benefits to an inherited IRA. For most beneficiaries that will allow a life expectancy payout. It’s for years beginning after 12/31/09. Qualified plans can allow a rollover in 2009 if the plan is amended before the effective date of the new law.