Inherited 401kPSP to 529 Plan
A client indicated that they have been advised by Fidelity that they can roll an inherited 401kPSP (from father) tax free into 529 Plans for benefit of their children. Anyone have an experience with this?
A client indicated that they have been advised by Fidelity that they can roll an inherited 401kPSP (from father) tax free into 529 Plans for benefit of their children. Anyone have an experience with this?
Permalink Submitted by Alan Spross on Fri, 2012-04-27 00:45
I think they must have misunderstood Fidelity.
This cannot be done without taking a taxable distribution and making a new contribution, which of course is not a rollover. The Govt is not about to allow anything that would eliminate taxable RMDs for a non spouse qualified plan beneficiary.