QLAC
Client takes a withdraw from a qualified plan and send the money to a bank then moves the money from the bank to a OLAC will this work for the 60 day rollover.
Client takes a withdraw from a qualified plan and send the money to a bank then moves the money from the bank to a OLAC will this work for the 60 day rollover.
Permalink Submitted by Alan - IRA critic on Fri, 2022-01-28 17:11
Yes, it would be reported as a rollover on Form 1040. The IRA QLAC can be funded by a direct rollover or a 60 day rollover from an employer plan. If RMDs are required for the 401k, only the amount in excess of the 401k RMD can be rolled over to any plan. IRA RMDs will be avoided for the QLAC balance until age 85 maximum unless the QLAC goes into payment mode earlier.