Life and Death Planning for Retirement Benefits

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Life and Death Planning for Retirement Benefits

 Advise the beneficiary regarding the option for Roth conversion of the inherited plan if that option is available; see ¶ 4.2.05 .

 Assist the beneficiary with transferring the account to the beneficiary’s own preferred financial institution if that option is available and desired. ¶ 4.2.02 – ¶ 4.2.04 .

 Compute the beneficiary’s required minimum distributions RMDs) using the Road Map for determining post-death RMDs at ¶ 1.5.02 . Make sure the beneficiary understands the obligation to take RMDs and help him comply with it by offering to compute the RMDs and sending annual reminders.

 Determine whether there is after-tax money in the inherited plan and if so how it will be distributed; see ¶ 2.2.07 .

 If the participant’s estate is subject to federal estate tax, advise the beneficiary regarding the IRD deduction, how much it is and how to take it; see ¶ 4.6.04 – ¶ 4.6.08 .

Make sure the inherited benefits are integrated into the beneficiary’s own estate plan, for example, by advising the beneficiary to name a successor beneficiary for his interest. See ¶ 1.5.12 (A).