I’ll start with the scenario then fallow with my questions.

I have a client who has a father who is 87 and has an old 403(b) plan that he started contributing to in 1970. Obviously he is in RMD and the client isn’t sure if she, as primary beneficiary, should keep the money in as a benficial 403(b) or transfer the money to an IRA upon the death of her father. I guess I am far enough removed from the 2 day workshop to have forgotten some key strategies: #1 Can she create a stretch IRA out of the 403(b) in RMD and take distributions over her life expectancy and if not can she create a beneficial IRA and take distributions over his life expectancy and if so is it life expecancy at the time of his death or from the time that RMDs started? #2 If she keeps it an inherited 403(b) how many years does she have to take distributions? #3 what is the diference between an inherited IRA/retirement plan and a beneficial IRA/retirement plan in this scenario.

Sorry if I was to vague. Please Help!!

Joe Ritterhouse
San Antonio, TX