• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

New rollover option for 401(k) beneficiaries

by on
in Small Business Tax

Q. My two children are my 401(k) beneficiaries. If I retire, should I roll over the 401(k) to an IRA? C.B.N., Omaha, Neb.

A.
Not necessarily. Previously, it was more advantageous for nonspouse beneficiaries to inherit an IRA than a 401(k). Reason: The 401(k) generally had to be emptied out within five years of death while IRA payments could be stretched over a longer time. However, beginning Jan. 1, 2010, all 401(k) plans must permit rollovers for nonspouse beneficiaries. (Some already do.)

Tip: Other factors, such as the investment mix in the 401(k), come into play. Discuss it with a financial pro.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/27042/new-rollover-option-for-401k-beneficiaries "

Related Articles...

    No matches

Leave a Comment