Permalink Submitted by Alan Spross on Thu, 2010-04-22 21:38
Yes, by direct trustee transfer only. In addition it can also be transferred to a beneficiary Roth IRA as a taxable conversion. This is something that a non spouse beneficiary of a qualified plan can do, but a non spouse beneficiary of a traditional IRA cannot do.
The RMD for the current year cannot be transferred. RMD amounts will be affected by creation of separate accounts if applicable or by the deadline date for the transfer as well as whether the decedent passed prior to the RBD or not.
Permalink Submitted by Alan Spross on Thu, 2010-04-22 21:57
In that case, the plan year and the date they were asked could be a factor. See the following copied from the Technical Explanation of WRERA which became law in Dec, 2008:
>>>>>>>>>>>>>>>>>>
Allow rollovers by nonspouse beneficiaries of certain retirement plan distributions (Act sec.
829 and Code sec. 402(c)(11), (f)(2)(A))
The Act permits rollovers of benefits of nonspouse beneficiaries from qualified plans and
similar arrangements. The provision clarifies that the current law treatment with respect to a
trustee-to-trustee transfer from an inherited IRA to another inherited IRA continues to apply.
Under the provision, effective for plan years beginning after December 31, 2009, rollovers by
nonspouse beneficiaries are generally subject to the same rules as other eligible rollovers.
>>>>>>>>>>>>>>>>
What this means is that they MUST offer the transfer for plan years starting after 12/31/2009. For plan years starting before that, the transfer is optional for the plan. Therefore, if the mandatory plan year has not started yet, there answer could reflect the optional nature of the transfer before they became mandatory. Note that the effective date is not based on the date of death, but the plan year, so this might be a case of waiting them out until it becomes mandatory.
Permalink Submitted by Alan Spross on Thu, 2010-04-22 21:38
Yes, by direct trustee transfer only. In addition it can also be transferred to a beneficiary Roth IRA as a taxable conversion. This is something that a non spouse beneficiary of a qualified plan can do, but a non spouse beneficiary of a traditional IRA cannot do.
The RMD for the current year cannot be transferred. RMD amounts will be affected by creation of separate accounts if applicable or by the deadline date for the transfer as well as whether the decedent passed prior to the RBD or not.
Permalink Submitted by Scott Wiard on Thu, 2010-04-22 21:46
Thanks. I thought so, but VALIC told me this could not be done.
Permalink Submitted by Alan Spross on Thu, 2010-04-22 21:57
In that case, the plan year and the date they were asked could be a factor. See the following copied from the Technical Explanation of WRERA which became law in Dec, 2008:
>>>>>>>>>>>>>>>>>>
Allow rollovers by nonspouse beneficiaries of certain retirement plan distributions (Act sec.
829 and Code sec. 402(c)(11), (f)(2)(A))
The Act permits rollovers of benefits of nonspouse beneficiaries from qualified plans and
similar arrangements. The provision clarifies that the current law treatment with respect to a
trustee-to-trustee transfer from an inherited IRA to another inherited IRA continues to apply.
Under the provision, effective for plan years beginning after December 31, 2009, rollovers by
nonspouse beneficiaries are generally subject to the same rules as other eligible rollovers.
>>>>>>>>>>>>>>>>
What this means is that they MUST offer the transfer for plan years starting after 12/31/2009. For plan years starting before that, the transfer is optional for the plan. Therefore, if the mandatory plan year has not started yet, there answer could reflect the optional nature of the transfer before they became mandatory. Note that the effective date is not based on the date of death, but the plan year, so this might be a case of waiting them out until it becomes mandatory.