ERISA-Bubs Posted June 2, 2011 Posted June 2, 2011 Can an estate open an IRA? I'm specifically trying to figure out if an Estate that is a beneficiary of a 401(k) plan can make a nonspouse rollover to an IRA.
masteff Posted June 2, 2011 Posted June 2, 2011 I'm specifically trying to figure out if an Estate that is a beneficiary of a 401(k) plan can make a nonspouse rollover to an IRA. If it can be done, it's not under the nonspouse rollover rules.... Code 402©(11) (added by section 829 of PPA '06) uses the definition of "designated beneficiary" from 401(a)(9)(E) which says "individual". Reg 1.401(a)(9)-4 Q&A-3 says "A person that is not an individual, such as the employee’s estate, may not be a designated beneficiary." If it was a trust, the answer might be different because 402©(11) provides for certain trusts to be eligible to do a rollover. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
Appleby Posted June 20, 2011 Posted June 20, 2011 No. It cannot be done, because an estate cannot rollover amounts from a qualified plan. Only individuals and qualified trusts can rollover inherited amounts from qualified plans to inherited IRAs Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
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