Permalink Submitted by mk foss on Wed, 2009-06-17 21:40
If she withdraws frunds directly from the IRA or 401k plan after you pass away, there is no 10% penalty. However, if she rolls the retirement benefits into an IRA or qualified plan in her own name – withdrawals would be subject to the 10% penalty as long as she is under 59.5.
Often a surviving spouse will rollovr plan benefits too quickly before they’ve assessed the penalty/tax implications. With good advice, she should have no difficulties.
Permalink Submitted by mk foss on Wed, 2009-06-17 21:40
If she withdraws frunds directly from the IRA or 401k plan after you pass away, there is no 10% penalty. However, if she rolls the retirement benefits into an IRA or qualified plan in her own name – withdrawals would be subject to the 10% penalty as long as she is under 59.5.
Often a surviving spouse will rollovr plan benefits too quickly before they’ve assessed the penalty/tax implications. With good advice, she should have no difficulties.