So my mother passed about 6 years ago, left me a bit of her 401k. I put it in one of their investment funds that I think just spreads it over index funds. Honestly just thought set it and forget it, thought I’d just keep it like that forever.
Come to find out there’s a 5 year rule with inherited 401K’s, wherein at the end of 5 years after the persons death the person holding the 401k needs to take a lump sum distribution of the entirety of the account… wish I’d known that earlier but ok, here we are.
Debating whether to just throw it right back into a 401K or perhaps spread it over some index funds and then use it to make my max IRA contribution for the next few years. Ideas?
Submitted February 04, 2023 at 02:13AM by Dimethyltripster https://ift.tt/9EJHKrn
