Spousal Inheritance of a 457(b)
I have a client who is 61 years old.
His wife passed away at age 70 in August of this year.
She had a 457(b)
My client is the sole primary beneficiary.
He wants to rollover this money to an IRA.
What advantages (if any) would he have in rolling this money over to an inherited IRA vs. putting it into an IRA in his own name?
Thank you,
Permalink Submitted by Alan - IRA critic on Thu, 2023-11-02 22:54
None. Client has passed 59.5, so there is no longer a need to maintain an inherited account for penalty waiver purposes. And there is no RMD avoidance by maintaining an inherited IRA because beneficiary RMDs would have to begin in 3 years when wife would have reached 73, where RMDs from an owned IRA would not start until he is 75.