Rollover and Transfer Rules for Beneficiaries
According to a recent New York Times article, baby boomers hold half of the nation’s $140 trillion in wealth, and $16 trillion will be transferred within the next decade. With more than $37+ trillion held in IRAs and other tax-deferred accounts—most of which is owned by baby boomers—a significant portion of this $16 trillion will consist of IRAs, 401(k)s, and similar accounts. Therefore, advisors must be prepared to help IRA owners/plan participants and their beneficiaries plan and execute transfers, rollovers, and distributions for inherited accounts with tax-efficient competence.
Learning Objectives:
- Explain the applicability of the 10-year rule versus the life-expectancy rule for beneficiaries
- Determine the rollover options for inherited Roth 401(k)s vs Traditional 401(k)s
- Describe the process for moving inherited IRAs while maintaining tax-deferred status
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