Non spousal Roth 401K Beneficiary question

[Guest vinson7]

What are the tax consequences for a beneficiary (non-spousal) of a ROTH 401(k) account? Can they roll that over into a ROTH IRA and not pay taxes? Can they take a lump sum distribution and not pay taxes either? Is there any circumstance where a non-spouse beneficiary of a ROTH 401K account would have to pay taxes?

Thanks in advance!

[jevd]

What are the tax consequences for a beneficiary (non-spousal) of a ROTH 401(k) account? Can they roll that over into a ROTH IRA and not pay taxes? Can they take a lump sum distribution and not pay taxes either? Is there any circumstance where a non-spouse beneficiary of a ROTH 401K account would have to pay taxes?

Thanks in advance!

See the following excerpt from IRS Pub 575:

Excerpt from Pub 575:

Rollovers by nonspouse beneficiary.

If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you may be able to roll over tax free all or a portion of a distribution you receive from an eligible retirement plan. The distribution must be a direct trustee-to-trustee transfer to your traditional or Roth IRA that was set up to receive the distribution. The transfer will be treated as an eligible rollover distribution and the receiving plan will be treated as an inherited IRA. For information on inherited IRAs, see Publication 590. HERE

See PUB 575

Here

[GMK]

Regarding non-spousal distributions, you may find this thread interesting:

http://benefitslink.com/boards/index.php?showtopic=39340

including the update that Appleby brought to our attention (near end of first page of the thread).