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Asked 11/18/2008

How is the death of the owner handled - what are spouses options

I am 66 years old and have never taken a distribution from my 401k. Due to lung cancer, I will not live out the winter. What are my wife's (she is beneficiary) options under these circumstances? Does she have to take lump sum - can she take distributions? Can it be rolled over into an IRA? How soon followingl my death does the issue have to be resolved?

 
 
 
 
 
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Answer 1/1 - Submitted 11/18/2008

She can do any of the above. If she doesn't need the money immediately, the best choice would be to roll it over into another IRA. She will need a death certificate for the company. It should be handled promptly but not necessarily immediately.

 
 
 
 
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