Inherited Qualified Plan not Required to Support Non Spouse Rollover
Among other things the IRS has posted IRS Notice 2007-7 which provides guidance on non spousal rollovers of qualified accounts authorized by the Pension Protection Act (PPA). Here are some of the key points I get from the Q&A.
Sec 829 – Non Spouse Beneficiary transfer to inherited IRA
Plans are not required to support it! They only to offer it on a non discriminatory basis if they do offer it. So remember to verify each case this might be an issue and not to assume anything.
You can’t change the character of distributions by rolling over. So if you have already started on the 5 year distribution rule, the rollover IRA will also be subject to the 5 year distribution rule. This means no additional stretch possible for those who inherited a plan before 2006.
This entry was posted by David on January 18, 2007 at 3:30 pm, and is filed under Tax. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.