Non-Spouse Inherits 401(k) account
A non-spouse has inherited a before-tax 401(k) account.
[In this case, tragically, a mother has inherited the 401(k) of her son].
Can the non-spouse roll his inherited 401(k) into an inherited (beneficial) TIRA?
Thank you in advance for your help.
Permalink Submitted by Robert Wright on Tue, 2019-01-08 18:57
In Other Words, can the mother roll the inherited 401(k) into a beneficial (inherited) TIRA for herself? If there is a Roth 401(k) balance, can she roll the Roth 401(k) balance into a beneficial (inherited) Roth IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2019-01-08 19:06
Yes, she can do a direct rollover of the pre tax 401k to either an inherited TIRA or inherited Roth IRA. If there is a Roth 401k balance, that can only be directly rolled to an inherited Roth IRA. Mother must begin annual beneficiary RMDs by no later than 12/31 of the year following the year of son’s death.
Permalink Submitted by Robert Wright on Tue, 2019-01-08 19:14
Alan,Thanks – As Always