401(k) participant dies at age 72 and is still employed

The 401(k) participant was still working at age 72 when he died in 2007.

His sole beneficiary is his daughter.

The participant was not taking RMDs from the 401(k).

Does the beneficiary (the daughter) have to take an RMD from the 401(k) for 2007?



No, because he passed prior to his RBD unless he was a 5% owner and/or should have been taking RMDs.

Daughter should take advantage of the non spouse IRA transfer, that has just been made available to secure her stretch provision. If the plan does not offer that now, they probably do not have the word yet that the IRS is deeming the transfer offer mandatory based on the pending Technical Corrections Bill to the PPA. She should also name as successor beneficiary ASAP.



Thanks!



Add new comment

Log in or register to post comments