Non-Spouse Beneficiary

[Nassau]

I have a client, who has a non-spouse beneficiary who is also in the same 401k. The non-spouse beneficiary would like to rollover a portion of the decedent's account into an (Education Savings Account) ESA. Is this allowable? I cannot find anything on the IRS' website or in any regulatory briefs that talks about whether or not a 401k can be rolled over into an ESA.

Please provide the Code or Regulation where this is permitted or not permitted. Thanks

[ETA Consulting LLC]

Shooting from the hip, but I think it's section 402© of the IRC that describes the eligible plans for receiving rollovers. ESA isn't one of them.

Good Luck!

[masteff]

Google search term: irs rollover chart

Best result: http://www.irs.gov/pub/irs-tege/rollover_chart.pdf

It is potentially confusing because the same terminology about contributions and rollovers gets used for ESA's and 529's. And not so many years ago they were called Coverdell IRAs. IRS Publication 970 fails to discuss rollovers from qualifed plans and traditional IRAs to Coverdell ESA's because the option simply doesn't exist. http://www.irs.gov/pub/irs-pdf/p970.pdf

[david rigby]

Might help?

http://benefitslink.com/boards/index.php?showtopic=47064