Beginning in 2007, the Pension Protection Act of 2006 allows for a nonspouse beneficiary of a retirement plan to rollover plan funds into an Individual Retirement Account (IRA).
If a participant in a retirement plan dies leaving his or her accrued benefit under the plan to a nonspouse beneficiary, the nonspouse beneficiary may be able to rollover the inherited funds into an IRA set up to receive such funds.
The rollover must be a trustee-to-trustee direct transfer and the retirment plan must provide for this type of rollover. The distribution rules depend on whether the participant died before or after his or her required beginning date.
If a participant in a retirement plan dies leaving his or her accrued benefit under the plan to a nonspouse beneficiary, the nonspouse beneficiary may be able to rollover the inherited funds into an IRA set up to receive such funds.
The rollover must be a trustee-to-trustee direct transfer and the retirment plan must provide for this type of rollover. The distribution rules depend on whether the participant died before or after his or her required beginning date.
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