joetaxpayer wrote:

- quote -

The above should read "this week's Business Week story".
Sorry for the typo, or any confusion.
JOE

I continue to be intrigued at the timing of financial articles amongst
different publications.

SmartMoney on line today published a story highlighting the new law
summarizing, "Beginning in 2007, a nonspousal beneficiary of a deceased
person's qualified retirement plan account (including a Section 403(a)
annuity, a Section 403(b) annuity, or a governmental Section 457 plan
account) can set up an IRA to receive a tax-free rollover of a plan
distribution."

All well and good, but the Business story (May 21, 2007 issue) "A costly
glitch for 401(k) heirs" focuses on the fact that while the new law
'permits' the conversion of a 401(k) to a non-spouse beneficiary, it
does not 'require' it. As noted by BW, "[the legislation] lets the plans
decide whether they want to offer the new benefit."

So, one comment; Good to check with the 401(k) custodian to confirm
they'll allow the non-spouse rollover, and if not, yet another reason
for the original owner to roll to an IRA as soon as s/he retires.

JOE