My wife will be inheriting her portion of her mothers 401k. I am very confused about our options.
1. 401K is a traditional 401k. No distributions were required, she passed in her 50s. Can we roll my wifes portion into her existing traditional IRA? I know that this is plan dependent.
2. IF we can roll into traditional IRA, does the money grow tax deferred until my wife starts to take distributions?
Or, am I totally wrong/lost and we have to take a distribution now, which will be taxed?
Thanks guys.
1. 401K is a traditional 401k. No distributions were required, she passed in her 50s. Can we roll my wifes portion into her existing traditional IRA? I know that this is plan dependent.
2. IF we can roll into traditional IRA, does the money grow tax deferred until my wife starts to take distributions?
Or, am I totally wrong/lost and we have to take a distribution now, which will be taxed?
Thanks guys.
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