[WSBAPT] 401(k) non-spouse rollover to IRA in trust

[Thomas White]

Can a non-spouse beneficiary of a 401(k) always roll it over to an IRA? I am wondering whether there is any risk to designating see-through discretionary trusts for minor children as contingent beneficiaries on a 401(k).

(My concern is whether, for plans that don't allow stretch treatment of the 401(k) for non-spouse beneficiaries, the trustee would be forced to pay trust income rates on the whole 401(k) immediately, or whether they can avoid that by rolling it over to an IRA.  Or do you have to review the individual plan terms before making a recommendation to the client? How do you usually approach this?)

Kind Regards,

Tom

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Thomas H. White
(206) 552-8650
Attorney/Owner
King County Business Law
https://linkedin.com/in/LawGuy
Thomas.H.White at KingCountyBusinessLaw.com<mailto:Thomas.H.White at KingCountyBusinessLaw.com>

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