Husband Did Not Transfer Deceased Wife’s 457 Plan
Woman dies in 2014 at age 67 with an employer sponsored plan (457) of all pre-tax contributions. Her husband is named as 100% primary beneficiary. The husband never transferred the account to his own IRA. Assets still remain in the 457 plan. The husband is age 71 by 2017 year end. Is he still able to transfer the 457 to his IRA and begin RMD’s based on his life expectancy or did he miss a window of time to transfer this account to his IRA? What are his options? Thanks.
Permalink Submitted by Alan - IRA critic on Wed, 2017-09-27 22:45
Was this a govt 457b plan or a non govt plan?
Permalink Submitted by [email protected] on Thu, 2017-09-28 01:25
She was a city employee, so it must have been a govt 457. It was offered by ICMA.
Permalink Submitted by Alan - IRA critic on Thu, 2017-09-28 03:07
Beneficiary RMDs for the husband would not begin until the end of the calendar year that the participant would have reached 70.5. While husband can roll this over to his own IRA anytime, if he does it this year he will be treated as if he owned the IRA all year and that would trigger an owner RMD for 2017, although his required beginning date may not be until 4/1/2018 depending on which year he reached 70.5. Can’t tell exactly which without knowing his actual DOB. Anyway, his ability to roll this over to his own IRA never expires.