Inherited 401K Spousal
Husband passed away 2022 age 59
Wife age 55 as beneficiary
Verifying the wife can Rollover the beneficiary 401k account into her beneficiary IRA. Continue to take withdrawals as needed through her age 59.5. Does she also have to take RMD’s until she transfers into her own IRA after age 59.5?
Thanks
Permalink Submitted by Alan - IRA critic on Thu, 2022-05-05 20:34
Yes, a direct rollover can be made to an inherited IRA and she can then take penalty free distributions. There are no beneficiary RMDs until the year husband would have reached 72. She should elect to assume ownership of the inherited IRA at 59.5 as there is no benefit to continuing inherited status beyond that point.