PERS Distribution to Estate
Individual dies. Has a PERS retirement account but did not name beneficiaries.
PERS will only pay proceeds to the estate.
Can the two sons of the deceased still be able to transfer assets oncepaid to estate, to an IRA and stretch?
I think I know the answer but wanted some back up.
Permalink Submitted by Alan Spross on Thu, 2012-01-26 21:46
No. Once any plan distributes the death benefit to an estate, it is taxable. The IRS has granted exceptions to spousal beneficiaries, but not to non spouse estate beneficiaries. Had the non spouse beneficiaries been named on the plan OR as the beneficiaries of a qualified trust, an inherited IRA could be opened to receive the plan death benefit. Unfortuneately, this is not possible with an estate.