Unfortunately, a non-spouse beneficiary is not allowed to rollover assets from a qualified plan. Therefore, purchasing an annuity appears to be the only option for a beneficiary who wants to stretch out payments over an extended period, while preserving the tax-deferred status of the assets. You may refer to Private Letter Ruling (PLR) 200244023 for an IRS ruling on a similar matter.

Of course, the beneficiary should follow the advice of his or her tax professional.

This question was answered by Denise Appleby
(
Contact Denise)






comments powered by Disqus
Trading Center