nonspouse rollover question

[Earl]

Person way past the required beginning date dies in 2005 leaving a 403(b) account to a daughter.

She is told that she has to take the money within 5 years and takes out some money in 2005.

Can she now roll to an IRA in her name fbo the deceased and annuitize it over her life expectancy or did that first distribution eliminate that option for her?

If so and depending upon the amount, could she back into an amount from which that first payment would represent an annuitized payment and rollover that amount to an IRA and continue that stream? And then take the other portion within 5 years...

Thanks

[Bird]

I don't think the fact that the first distribution was made in 2005 (and a second will be needed in 2006) affects the ability to roll out in 2007.

I didn't really understand what you were proposing in the second part but I think that it becomes moot.

[Guest LVanSteeter]

At this time, I don't think that a non-spousal beneficiary can roll the funds to an IRA.

[Earl]

That's right. Distributions after 12.31.06.

So is there any effect/problem with rolling over in 2007 and starting a payment stream?

2005 distribution doesn't disqualify?

2006 - do they need to take a distribution from the 401(b) account.

I am looking and will report anything I find.