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Rolling Over Uncle Henry's 401(K)

Monday, August 13, 2012 - 8:53 PM
According to a Smart Money article,
Only a few years ago, many non-spousal inheritors had no tax-deferral option when they inherited all or part of a deceased individual's qualified retirement plan account [... 401(k) plans, profit-sharing plans and the like].  In the past, you had to pay the resulting income tax hit in the year you received the distribution. Today's rules allow you to defer taxes by rolling over the distribution into an IRA that you control. But you must follow the proper procedure to get this taxpayer-friendly outcome.   Here's what non-spousal beneficiaries need to know. 

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Note also that RMD rules still have to be satisfied.
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pearlbrownpearlbrown1,474 posts since
Nov 2, 2010
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