goldtpa Posted November 8, 2011 Posted November 8, 2011 A participant in a 401k has passed away. Her spouse, the bene, rolls her 401k into a brand new IRA. Upon advice from his broker, he now wants to transfer her 401k money (which is now in his IRA) to his 401k. His 401k allows for rollovers. The question is, since he is older than 70 1/2, does he have to take his 2011 RMD from the IRA he created with her 401k money? Or can he transfer 100% of her 401k money to his 401k without having to take the RMD for 2011? Thanks.
Lou S. Posted November 8, 2011 Posted November 8, 2011 I assume this was all done in 2011. If so then no RMD in 2011 for the new IRA since IRA balance on 12/31/10 was $0.00. If there was an RMD required it should have been processed by the decedents 401(k) if she was due a 2011 RMD. The second question is can he do a second rollover? I thought there was limit that unless it was trustee-to-trustee transfer you could only do a rollover once in 12 month period. Though admitadly I don't work much with IRAs and could have my facts wrong on this. The last question is, is this an inherited IRA or an IRA the spouse is treating as his own. If it is an inherited IRA, I do not believe it is eligible to roll into the qualified plan. Though agin my facts could be off on this. So in summary - no RMD required but I'm not sure if what he wants to do is allowable. Though that may not be the answer you were looking for. Hopefully someone else with more IRA experience can shed some light.
masteff Posted November 9, 2011 Posted November 9, 2011 The second question is can he do a second rollover? I thought there was limit that unless it was trustee-to-trustee transfer you could only do a rollover once in 12 month period. Though admitadly I don't work much with IRAs and could have my facts wrong on this. My understanding is the rollover from QP to IRA doesn't count toward the restriction which applies to IRA-to-IRA rollovers. The last question is, is this an inherited IRA or an IRA the spouse is treating as his own. If it is an inherited IRA, I do not believe it is eligible to roll into the qualified plan. Though agin my facts could be off on this. See page 18 of IRS Pub 590... rolling it into a QP would have effect of making it his own (if it's not already). http://www.irs.gov/pub/irs-pdf/p590.pdf Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now