Permalink Submitted by Alan Spross on Mon, 2009-07-06 22:21
No, not at all. Many plans have adopted life expectancy as the default RMD method for non spouse beneficiaries. In addition, if the plan still requires the 5 year rule if employee passed prior to RBD, starting in 2010, the plan must offer the beneficiary a direct transfer to an inherited IRA account from which the beneficiary could take life expectancy RMDs, providing the transfer was requested before the end of the year following employee’s death.
Permalink Submitted by Alan Spross on Mon, 2009-07-06 22:21
No, not at all. Many plans have adopted life expectancy as the default RMD method for non spouse beneficiaries. In addition, if the plan still requires the 5 year rule if employee passed prior to RBD, starting in 2010, the plan must offer the beneficiary a direct transfer to an inherited IRA account from which the beneficiary could take life expectancy RMDs, providing the transfer was requested before the end of the year following employee’s death.