Truth 36 401(k) transfers

Pass it on. When you have something good, it is only natural to want to pass it on to the ones you love. Passing on a 401(k) with its tax-deferral qualities still intact is a gift that can keep on giving, as the people you transfer it to can continue to defer taxes over the rest of their lives.

The ability to transfer an IRA at death to a spouse or even a nonspouse has been established for some time, but the ability to transfer a 401(k) account at death to an inherited IRA for a nonspouse beneficiary has only been allowed since the enactment of the Pension Protection Act of 2006. Previously, if an employee remained active in his company’s 401(k) plan rather than transferring his 401(k) into an IRA, at his ...

Get The Truth About Protecting Your IRAs and 401(k)s now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.