Deceased husband 401K to Wife’s SEP IRA
[b]Can a deceased husband’s 401(k) be rolled over to a Wife’s Sep IRA?[/b]
She was the primary beneficiary and they are both younger than 59 1/2.
I recommended that she roll it to a beneficiary IRA for her benefit but she still wants to know if she can consolidate all of his 401(k) assets to her SEP IRA.
Permalink Submitted by mk foss on Tue, 2010-08-31 20:23
If she has the 401k transferred to a beneficiary account she can withdraw funds before age 59-1/2 without penalty (that’s the rule when the beneficiary is not a spouse and PLRs allow a spouse the same treatment). At age 59-1/2 she ccould combine it with her SEP or roll it to any other IRA of hers.
She could roll it to her SEP right now but she’d incur the 10% penalty on distributions before age 59-1/2.