http://www.irs.gov/publications/p571/ch08.htmlNonspouse beneficiary. A nonspouse beneficiary may make a direct rollover of a distribution from a 403(b) plan of a deceased participant if the rollover is a direct transfer to an inherited IRA established to receive the distribution. If the rollover is a direct trustee-to-trustee transfer to an IRA established to receive the distribution:
The transfer will be treated as an eligible rollover distribution.
The IRA will be considered an inherited account.
The required minimum distribution rules that apply in instances where the participant dies before the entire interest is distributed will apply to the transferred IRA.
For more information on IRAs, see Publication 590.
bsteiner wrote:In response to sscritic, it's in Section 402(c)(11), which was added by the Pension Protection Act of 2006, and was amended by the Worker, Retiree, and Employer Recovery Act of 2008.
Prior to amendment by PPA ’06, § 408A of the Code provided that a Roth IRA could only accept a rollover contribution of amounts distributed from another Roth IRA, from a nonRoth IRA (i.e., a traditional or SIMPLE IRA) or from a designated Roth account described in § 402A. These rollover contributions to Roth IRAs are called “qualified rollover contributions.”
Subject to the limitations described in the final sentence of A-1 of this notice [income limits, since repealed, I think], the new definition of qualified rollover contribution in § 408A(e) includes distributions from annuity plans described in § 403(a) and (b) and from eligible governmental plans under § 457(b).
(1) In general
The term “qualified rollover contribution” means a rollover contribution—
(A) to a Roth IRA from another such account,
(B) from an eligible retirement plan, but only if—
(i) in the case of an individual retirement plan, such rollover contribution meets the requirements of section 408 (d)(3), and
(ii) in the case of any eligible retirement plan (as defined in section 402 (c)(8)(B) other than clauses (i) and (ii) thereof [this excludes IRAs]), such rollover contribution meets the requirements of section 402 (c), 403 (b)(8), or 457 (e)(16), as applicable.
For purposes of section 408 (d)(3)(B), there shall be disregarded any qualified rollover contribution from an individual retirement plan (other than a Roth IRA) to a Roth IRA.
Users browsing this forum: No registered users and 21 guests