Deceased daughters pension
My single daughter died at 55 with no beneficiary on her company pension plan. Her custodian required me to be appointed as her Personal Representative by the Probate Court to get the money. I don’t want to pay taxes on the whole $36,000 this year. Even though I’m 80, I assume I can roll it over into an IRA which I’d have to open. If not what are my options?
Permalink Submitted by Alan - IRA critic on Thu, 2019-10-17 15:44
Because the beneficiary was her estate instead of a designated beneficiary (a common and costly error), the distribution is not eligible for rollover per Tax Code Sec 402(c)(11). It is income to her estate and should be passed through to the beneficiaries in her will, or if no will to the beneficiaries under the intestate rules of her state. If you therefore become the beneficiary, because estate tax rates are so high, as the PR you would pass the distribution through the estate to yourself, and you would have to pay the taxes on your personal return. There are no options to roll over the distribution into any retirement plan.