403b inheritance
Can a spouse inherit a 403b without having to take distribution? The trustee said check only with 20% withheld. Could it have been transfered to an IRA?
Can a spouse inherit a 403b without having to take distribution? The trustee said check only with 20% withheld. Could it have been transfered to an IRA?
Permalink Submitted by Alan Spross on Thu, 2009-09-10 22:20
In plan is maintained inherited form, the spouse does not need to start RMDs until the year the deceased spouse would have reached 70.5.
If a distribution has been issued, it can be rolled over to the spouse’s own IRA within 60 days to avoid taxes, but the funds that were withheld will have to be replaced in order to complete the rollover. If the distribution was to satisfy a pre 2009 RMD requirement of the deceased, then the distribution cannot be rolled over.