401(k) Beneficiary Question
Have a client who is the ‘beneficiary’ of her husbands 401(k)… The husband passed away recently. Are the assets from the 401(k) eligible to be rolled into the spouses IRA, kind of like the same way IRA assets are eligible for spouses to be rolled ???
Permalink Submitted by Alan - IRA critic on Wed, 2013-07-31 20:18
Yes, the surviving spouse can either maintain the inherited 401k, roll it over to an inherited IRA or roll it over to her own IRA. If she is not yet 59.5 and may need funds before reaching that age, she should wait to roll it to her own IRA to enable penalty free access to funds. She may also want to check into NUA possibilities if the plan holds appreciated employer stock shares.
Permalink Submitted by Gregg Guiol on Wed, 2013-07-31 20:46
Thank you very much for taking the time to respond … Your assistance has always been helpful !!!