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<p class="MsoNormal">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).
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">(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?)<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Kind Regards,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Tom<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">--<o:p></o:p></p>
<p class="MsoNormal">Thomas H. White<o:p></o:p></p>
<p class="MsoNormal">(206) 552-8650<o:p></o:p></p>
<p class="MsoNormal">Attorney/Owner<o:p></o:p></p>
<p class="MsoNormal">King County Business Law<o:p></o:p></p>
<p class="MsoNormal"><a href="https://linkedin.com/in/LawGuy"><span style="color:blue">https://linkedin.com/in/LawGuy</span></a><u><span style="color:blue"><o:p></o:p></span></u></p>
<p class="MsoNormal"><a href="mailto:Thomas.H.White@KingCountyBusinessLaw.com"><span style="color:blue">Thomas.H.White@KingCountyBusinessLaw.com</span></a><u><span style="color:blue"><o:p></o:p></span></u></p>
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<p class="MsoNormal">NOTICE: This message and related data is intended only for confidential use by the designated recipients. The information may be legally privileged and should not be disclosed without approval of the sender. If you have received this in
error, please destroy this email and notify the sender immediately. Thank you for your assistance. Unless expressly stated herein, this communication is not to be used for avoiding federal tax penalties. IRS Circular 230.<o:p></o:p></p>
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