[USER]

Hi, everyone. I’m hoping to get some advice on navigating options for an inherited 457b plan. My dad recently passed, and my mom is the sole beneficiary of his 457b plan.

My dad was 66 and still working at the time he passed, but my mom is 73 (as of April 2024) and retired.

My understanding is that RMDs are required starting at age 73, so I’m trying to help my mom evaluate her options with this inherited account.

Some context/background information: my mom will receive income from a combination of social security and other pensions from her former employment as well as my dad’s former employers, so she will likely not need to use the funds in this 457b plan to cover living expenses any time in the near future.

She also has a healthy cushion in savings that she will continue to contribute to for an emergency fund.

We would prefer to keep the funds saved/invested very conservatively and also minimize her tax burden as much as possible with this account. I’m in my early 30s and have a longer time horizon, so I’m new to navigating the RMD process.

Any advice for how to navigate this process as far as ideas for what to do with the account as well as conservative investment strategy ideas would be greatly appreciated. Thank you!

[Robert]

Y’all need to get with good tax lawyer; or a good CPA. Yes,! I understand your desire to find wisdom from the hive mind; and we are here to support each other; but on something like this subject; where there are very defined rules and there are penalties for not following those rules……

Spend the money that it will take to consult with a good tax lawyer or a good CPA.

The ones that I myself use are not cheap…. but they have saved me from making some VERY expensive mistakes.

[Donna]

She’s required to start withdrawal at the RMD like any other account. She has 10 years to withdraw it all. I’m no expert though.

[Author]

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