rollover?

[taxmom34]

client's mom died in december. she had a 401K or IRA and beneficiaries are three siblings, client was asking if he could take his share and roll it over into his own 401K . wasn't there a change last year or 2 years ago that would allow someone other than spouse to roll over such accounts instead of withdrawal within the 5 years after death. he thinks his siblings will be taking their shares in a lump sum. they won't be subject to the penalty will they? they are under 40.

[Burke]

1. Yes, one child can now rollover and begin distributions. Can defer for 2009 if owner was under RMD rules.
2. Other children can take theirs in lump-sum, and pay the tax, but no penalty due to death exception.

[dustoffgirl]

I agree

Burke has it right each child has the right to take the money in their own way

[taxmom34]

thanks

to both for prompt response. i'm advising my client to roll over his distribution into his own pension plan. i really enjoy reading all the posts on this board. I get instruction, comedy, insight, i feel like i'm not alone .

[Larmil]

Comedy???

to both for prompt response. i'm advising my client to roll over his distribution into his own pension plan. i really enjoy reading all the posts on this board. I get instruction, comedy, insight, i feel like i'm not alone .

Are you referring to Black Bart?

[Beth]

Rollover Chart

For those interested, the IRS has an excellent rollover chart at: http://www.irs.gov/retirement/articl...160469,00.html

Once there, scroll down and the Rollover Chart link will open the file

[taxmom34]

thanks, printed chart and giving copy to any of my clients who have questions about rollovers. thanks