The Heart ACT
I have a client whose son was killed in the military recently. They are questioning the Heart Act for the life insurance can it be placed into a ROTH IRA. How much and is it only the listed beneficiary or can it be other family members.
Permalink Submitted by Alan - IRA critic on Fri, 2018-05-25 00:14
Only the beneficiary that receives the eligible payments can roll over all or part of those benefits to their Roth IRA or Coverdell ESA. Rollovers must be completed within 1 year from receipt of the benefits. In the Roth IRA these amounts are treated as rollover contributions (non taxable conversions), so can be distributed tax free at anytime.