403b
I have a client who just found our his wife had an active 403b account. She passed this in this calendar year. Does he have the ability to roll the 403b into his IRA? he is age 56 and does not need any income.
I have a client who just found our his wife had an active 403b account. She passed this in this calendar year. Does he have the ability to roll the 403b into his IRA? he is age 56 and does not need any income.
Permalink Submitted by Alan Spross on Wed, 2012-05-30 01:36
Yes, if he is sure that he will not need any distributions from this account until he is 59.5, he can roll the account into his own IRA. If there is any doubt about that he should retain the 403b as a beneficiary. Since he will have no RMDs if he does this until his wife would have reached 70.5, there is no downside of doing that until he reaches 59.5.
Also, if the 403b has high expenses or bad investment offerings, he also has the option of transferring the plan to an inherited IRA which will have the same advantages as noted above, except that he may have better investment or lower expenses options. He could then assume ownership of the inherited IRA after reaching 59.5.