Non-Spouse 401k Beneficiary
My 35-year-old client was the beneficiary of her 62-year-old mom’s 401k that is with a major airline. The 401k custodian moved her mom’s 401k into my client’s name in the 401k plan as a “non-spousal beneficiary 401k” but they are saying it is NOT an “inherited account”.
The custodian told my 35-year-old client that it is NOT an inherited 401k and that she is free to transfer her 401k account to her own IRA. Does that sound correct? Perhaps the 401k custodian meant to say she can transfer it into her own “Beneficiary IRA” and not her own personal IRA?
Thanks as always!
Permalink Submitted by Alan - IRA critic on Wed, 2022-10-26 18:41