Question about distributions from a retirement plan; if they begin before the demise of the account holder

[Guest Enda80]

If a person begins his or her required minimum distributions after age 70.5, then after a few years deceases, what happens with the distributions? May the designated beneficiary roll the whole remaining amount into his or her own IRA? Do the assets have to stay segregated or may he or she (the beneficiary) commingle the assets with their own funds?

[jevd]

What type of plan does the account owner/participant have. IRA (Traditional, SIMPLE IRA or ROTH) or Qualified Plan. If a qualified plan, what type.

Who is the beneficiary ? Spouse, Non-spouse, Qualifying Trust etc. How old is the beneficiary if a person? All of these factors come into play.

In general, A spouse may rollover a qualified plan death benefit to his/her own account. A non-spouse may establish an inherited IRA ( in the name of the deceased for the beneficiary's benefit) for the benefit but cannot rollover the benefit to his IRA in his own name. THe distribution period will be based on the age of the beneficiary & the deceased account owner. IRAs have slightly different rules and they differ by Type

Those are some general rules. Refer to IRS Publications 590 & 560 & Possibly 575 for additional informaation. Defined benefit plans have additional issues. If you are unfamiliar with plans in general contact the plan administrator if its a qualified plan or the custodian/trustee if an IRA. Look before you leap. Be sure you understand all of the options and the requirements. Pitfalls and penalities abound. If you have a more specific question or more detailed information, repost. There are many knowledgeable people on this board willing to help but always always check with your tax professional. Good Luck.