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.

  1. Spousal Beneficiary Rollover

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

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

    A distribution of eligible rollover assets from a qualified plan, ...
  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  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 ...
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  1. When can catch-up contributions start?

    Most qualified retirement plans such as 401(k), 403(b) and SIMPLE 401(k) plans, as well as individual retirement accounts ... Read Full Answer >>
  2. Are 401(k) contributions tax deductible?

    All contributions to qualified retirement plans such as 401(k)s reduce taxable income, which lowers the total taxes owed. ... Read Full Answer >>
  3. Are 401(k) rollovers taxable?

    401(k) rollovers are generally not taxable as long as the money goes into another qualifying plan, an individual retirement ... Read Full Answer >>
  4. Are catch-up contributions included in the 415 limit?

    Unlike regular employee deferrals, catch-up contributions are not included in the 415 limit. While there is an annual limit ... Read Full Answer >>
  5. Can catch-up contributions be matched?

    Depending on the terms of your plan, catch-up contributions you make to 401(k)s or other qualified retirement savings plans ... Read Full Answer >>
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