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New IRA Rollover Rules for Nonspouses
Now you can roll over the account tax-free into an IRA of your own.
 
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Posted 6:14 PM EST August 15, 2007
Posted by: siegelf
Why is it best to roll over a 401(k) to an IRA as soon as one retires or leaves the job? Aren't the fees less for a 401(k) less than a IRA?
Posted 6:30 PM EST May 25, 2007
Posted by: Boraxo
I cannot agree with the advice to rollover a 401k when you leave your job. Many 401k plans have low fees and excellent options (my US govt TSP plan leads the pack) so there is no reason to do a rollover.
Posted 6:09 PM EST May 17, 2007
Posted by: JACK BIGGS
Thank you Joetaxper for the clarification.
Also, it is my understanding that the 2006 IRS Publication 590 for IRAs provides an option for 5 year withdrawals regardless if the deceased turned 70-1/2 or not.
Re: This story states 'Scenario 2: Uncle Henry dies on or after April 1 of the year after turning 70? ....... The five-year rule isn't an option'

Since the 2007 IRS Publication 590 is not yet available, I have not yet been able to confirm this change.
Posted 5:16 PM EST May 17, 2007
Posted by: joetaxpayer
A non-spouse was already able to inherit the IRA, it was the 401(k) that was added during this round of tax code updates. Note; the employer may not permit this. The law allows it, but does not require it. Best to roll the 4019k) to an IRA as soon as one retires or leaves the job.
JOE
Posted 9:22 PM EST May 16, 2007
Posted by: penquist
Every article I've read refers to a 401k plan that is rolled over into an IRA. What if you inherit an IRA that was created by the deceased to rollover their pension distribution while they were alive? Do the non-spousal rules still apply?
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