10 year averaging | Ed Slott and Company, LLC

10 year averaging

I just finished a call with the IRS and it was confirmed that, provided there is a full distribution, no withdrawals in the first five years of the plan and the individual was born prior to jan. 1936, that the decedent spouse of a 401(k) would be able to take 10 year averaging. There is one hitch. The administrator is insisting that the beneficiary is the marital trust. So, provided the decedent spouse qualifies favorably for the look through provision would the decedent spouse still qualify for the 10 year averaging? The IRS reprenstative did not have an answer. Thank you in advance for your help.

Who is beneficiary, and has participant died?

The beneficiary is the marital trust according to fidelity. The owner has died. We are trying to get a look through distribution. The spouse is the co trustee and beneficiary of the trust.

Why can't the marital trust qualify for 10-year averaging? The lawyer handling the estate, or the lawyer for the trustees of the marital trust, should be able to advise as to the choices.

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