Advanced Underwriting Consultants

Ask the Experts – February 4

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax questions posed by producers.  Here’s the question of the day.

Question: Can the non-spouse beneficiary of an inherited 403(b) account stretch her RMDs based on her own life expectancy? If not, can she roll the account over to an IRA and then use the stretch option?

Answer: Yes, the beneficiary generally has the option to stretch RMDs over her life expectancy, but she should first make sure that her specific plan allows her to stretch.

If her plan does not allow her to stretch based on her life expectancy, she can still achieve a similar result by rolling the inherited 403(b) account into an IRA. The new IRA will be treated as an inherited IRA, and, accordingly, she has the option to stretch RMDs over her own lifetime.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.