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A business owner who sponsors a 401(k) Plan dies. He designated his two children as the beneficiaries. The two children work for the business and are participants in the Plan. Can they rollover the distribution from their father's account into the Plan? The plan allows rollover contributions.

Posted
A business owner who sponsors a 401(k) Plan dies. He designated his two children as the beneficiaries. The two children work for the business and are participants in the Plan. Can they rollover the distribution from their father's account into the Plan? The plan allows rollover contributions.

No. They may roll it over into an "Inherited IRA" and begin receiving the death distributions from there.

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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