Death Claim Question (Divorce)

A customer of mine (75 years old) was recently divorced. Her husband (4 years older) had two 401k accounts, one of which was put in my customer’s name via QDRO, the other was kept in her husband’s name, and the now ex-wife is still listed as the primary beneficiary. After the divorce, the husband dies (two years ago). Can the two accounts be rolled over and combined in the wife’s TIRA, or does the account still in the husband’s name, if rolled over, need to go into a beneficiary IRA since she would now be a non-spouse beneficiary?
Thank you



I will assume that husband was retired and did not remarry before passing as that would trigger beneficiary questions on his 401k account, and also that the 2021 RMDs were properly handled. As you indicated, she is a non spouse beneficiary and the inherited 401k can only be directly rolled into an inherited IRA after distributing the 2022 beneficiary RMD. She is an EDB, being not more than 10 years younger, so can stretch the inherited IRA over her single life expectancy.



Add new comment

Log in or register to post comments