Inherited Pre 1987 Post Tax Distribution from a PS Plan
Apparently the owner of the account could roll the distribution into a Roth IRA. My question is can the beneficiary (son) roll the assets into an Inherited Roth IRA?
Thank you.
Apparently the owner of the account could roll the distribution into a Roth IRA. My question is can the beneficiary (son) roll the assets into an Inherited Roth IRA?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2018-03-08 23:58
Due to Notice 2014-54 the beneficiary should be able to order a split rollover with ALL after tax contributions, not just the pre 87 AT contributions being directly rolled to an inherited Roth IRA and the pre tax balance to an inherited TIRA. This is a broader option than the prior rules which depended somewhat on plan accounting rules including possible changes made after retirement or death. The beneficiary needs to take up this question with the plan, but there is no IRS problem with the split rollover.