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Deceased 403(b) Account

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Has anyone ever heard of this and/or has anyone ever established one? Apparently, account can be opened in the name of a non-spouse beneficiary, through a trust and minimum distributions will be based on the life expectancy of the beneficiary of the trust, usually a son or daughter. Any advice or knowledge would be helpful

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You are referring to a "stretch retirement account".

 

Ex. Grandpa Joel has 5 grandchildren and lists each equally as a primary beneficiary. Upon Joel's death at age 100 each grandchild has the option to receive his/her 20% share in Joel's retirement account over his/her individual life expectancy. This life expectancy payout allows for the "stretching out" of the grandchild's inherited tax liability as well as a continuation of tax deferred growth for decades into the future.

 

Peace,

Joel L. Frank

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You don't need to establish a trust to do this. It can be done with your regular/current 403b. As Joel detailed by dividing it into multiple accounts with different beneficiaries or if the beneficiaries are close in age just divide it up with them as beneficiaries. The trick is not to have your 403b go into your estate, but directly to the beneficiaries,

Roberta

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Guest eddie

Stretch retirement account". Is mostly use by annuity companies- in the real world it's call a -beneficiary IRA or 403(b) 7.

 

Also you should check with your current Custodian if separate accounting is used you do not have to set up multiple accounts with different beneficiaries

If it not use you will need to set multiple accounts for the beneficiary. (Separate accounting identifies each beneficiary as a separate account)

 

Title:

Name Custodian

Decease name 403(b) 7

Beneficiary 403(b) 7 or IRA FBO

Name of Beneficiary

 

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