60-day rollover from 401k to IRA

Submitted by chris erickson on Mon, 2020-03-23 17:16

Hello,
My spouse passed away in July 2019, three weeks before he would have turned 70.5. I’m 66 and the beneficiary of his 401k. We just rolled his 401k (I think they might have made it my beneficiary 401k as an interim step but am not sure) into my own Traditional IRA (not an Inherited Traditional IRA). Concurrent with the 401k rollover, the administrator of the 401k forced me to take his RMD. We do not believe that an RMD was required because he died before her turned 70.5 but they did not agree.
1. Am I correct that an RMD was not required?
2. Regardless, can I do a 60-day rollover of the gross taxable amount distributed into my personal IRA?
Thank you very much.



Submitted by David Mertz on Mon, 2020-03-23 18:53

  1. You are correct, no RMD was required because your spouse died before his required beginning date for RMDs, April 1, 2020.  (Even if he had died later in 2019 after reaching age 70½, no RMD would have been required.)
  2. Yes, within 60 days of the distribution you can roll over the gross amount of this distribution.

Submitted by Alan - IRA critic on Mon, 2020-03-23 18:57

  • You are correct. While 2019 would have been an RMD distribution year for him, his death prior to the required beginning date resulted in no RMD due for 2019. Applicable IRS Reg is 1.401(a)(9)-3, QA 3.
  • Yes, you can do the 60 day rollover and it does not count against the one rollover limit for 12 months because the distribution was not from an IRA account.
  • Your first IRA RMD Distribution year will be for the year you reach 72.

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