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
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    It depends on the provision of the IRA plan document. Some (though very few) do not allow the designation of successor beneficiaries. ... Read Answer >>
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