HW "Skip" Weldon wrote:

- quote -

You are referring to the new law allowing retirement plans to roll to
non-spouse beneficiaries. (401k, 457, 403b as stated below). One has
always had the ability to roll an IRA to a non-spousal beneficiary account.

- quote -

I believe the old custodian has no choice. Today, if I leave my job, I
have the right to roll my 401k to my own IRA, the custodian cannot
reject such a request. As discussed here over the years, the 401k
custodian did have the right to not permit the stretch for beneficiaries
of the 401k, forcing a five year payout. The way I read the new laws,
it's the right of the (properly worded) beneficiary to roll that 401k to
the bene IRA. Once this is better understood, a review of the
beneficiaries on the accounts is in order.
JOE

Recent legislation allows non-spouse beneficiaries to roll over the
previous owner's account as an Inherited IRA to another custodian.
Among other things allows the non-spouse beneficiary to choose IRA
custodians who offer lifetime pay outs.

Since there is a difference between the IRC allowing something and the
IRC mandating something, here's my question: Does the new legislation
REQUIRE current custodians provide the funds, or do we still have to
look to the 401k/457/403b plan document to see if they allow lump-sum
rollovers?


-HW "Skip" Weldon
Columbia, SC