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 ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center