Inherited 403B Retirement Plan
My client was named as beneficiary on her mother’s 403(B) retirement account with ABC Financial. She received a letter from ABC Financial notifying her the balance had been transferred into her name. Is it appropriate to transfer the 403B account to an inherited ira?
Permalink Submitted by Alan - IRA critic on Fri, 2017-09-08 00:22
In most cases, yes. Better investment options, and usually lower costs compared to the average 403b. Client has a choice between an inherited TIRA or inherited Roth IRA, and the death benefit must be transferred as a direct rollover, not a 60 day rollover. The inherited IRA RMD could be higher if the direct rollover is not completed prior to 12/31 of the year following the year of mother’s death.