Non-Spouse Beneficiary Rollover

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Spousal Beneficiary Rollover

    A transfer of retirement fund assets to the spouse of the deceased. ...
  2. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  3. Rollover

    A rollover is when you do the following: 1. Reinvest funds from ...
  4. Direct Rollover

    A distribution of eligible rollover assets from a qualified plan, ...
  5. Spousal IRA

    A type of individual retirement account that allows a working ...
  6. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
Related Articles
  1. Moving Retirement Plan Assets: How To ...
    Retirement

    Moving Retirement Plan Assets: How To ...

  2. Divorcing? The Right Way to Split Retirement ...
    Retirement

    Divorcing? The Right Way to Split Retirement ...

  3. Combining Your Plan Assets? Not So Fast!
    Retirement

    Combining Your Plan Assets? Not So Fast!

  4. How After-Tax Rollovers Affect Your ...
    Taxes

    How After-Tax Rollovers Affect Your ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center