The following is a list of persons eligible for rollover distributions:
- Participants in retirement plans and owners of IRAs are eligible to rollover most distributions from one plan type or account to another plan type or account.
- A spousal beneficiary of the deceased’s retirement plan or IRA are eligible to rollover the death benefit either to the spouse’s own “workplace plan” or to an IRA.
- Non-spousal beneficiaries receiving distributions made after Jan. 1, 2007 are eligible to rollover the death benefit distribution from a qualified plan (including 401(a), 401(k), governmental 457(b) and 403(b) plans) to an inherited IRA as permitted by the Pension Protection Act of 2006 but only as a ‘direct rollover. Non-spouse beneficiaries may not do a 60-day rollover. Effective Jan. 1, 2010, this permitted direct rollover by a non-spouse beneficiary became a requirement for employers to offer under their plan. Prior to Jan. 1, 2010, this was an optional provision only.
Editor’s Note: This is an occasional feature in the NTSA Advisor. It is drawn from The Source, a book that covers technical, compliance, administrative and marketing aspects of the 403(b) and 457(b) markets. More information about The Source is available here.
- Log in to post comments