RMD for deceased participant

[Santo Gold]

A 73 year old (non-key) participant passed away. She was still employed at the time of her death and was not taking RMDs. Her surviving spouse does not want to take her 401(k) money out of the plan right now. What time frame do we have in regard to paying the money out? I am not sure yet as to the age of the spouse (who is the beneficiary).

Thanks

[ETA Consulting LLC]

He must take is first distribution by December 31, 2014 based on his single life expectancy. This is because she died before her RBD. Now, he can roll over directly to his IRA. When you determine his age, you can calculate the best option (which his likely to roll over anyway). When he takes a distribution as beneficiary, he's using the single life expectancy. If he takes an RMD from his own account, then he's using the uniform life expectancy (calculated at his single and a spouse who is exactly 10 years younger).

Good Luck!

[QDROphile]

You have to look at what the plan says. Not all plans are designed to allow distributions to be delayed to the limit imposed by law. An intelligent desgin is to require distribution in a lump sum.