Non-Spouse Beneficiary Rollover

DEFINITION of 'Non-Spouse Beneficiary Rollover'

A retirement plan asset rollover performed in the event of the death of the account holder, where the recipient is not the spouse of the deceased. The most common practice for a non-spouse beneficiary rollover, is that the recipient receives the balance in a one-time lump sum payment, subjecting them to full immediate taxation.

BREAKING DOWN 'Non-Spouse Beneficiary Rollover'

If the funds are rolled over into another retirement account, it must be named as a beneficiary account including both the deceased and beneficiary's names. Many retirement accounts require that the spouse be the sole beneficiary.

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RELATED FAQS
  1. What do you do for a non-spouse beneficiary receiving a required minimum distribution ...

    Unfortunately, a non-spouse beneficiary is not allowed to rollover assets from a qualified plan. Therefore, purchasing an ... Read Answer >>
  2. I received a lump sum pension when I retired. Can I roll this lump sum into a 401K ...

  3. If I pass away, will my retirement plan go to my spouse tax free?

    If your spouse is the designated beneficiary of your retirement plan, the assets will pass to him or her tax free. The general ... Read Answer >>
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    Yes, the 529 plan (also known as a "qualified tuition program") allows you to distribute and roll over funds from one 529 ... Read Answer >>
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