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Applies to distributions with respect to individuals who die after December 31, 2019
Spouse
Disabled or chronically ill individuals
Individuals who are not more than 10 years younger than the employee (or IRA owner), or
Children of the employee (or IRA owner) who have not reached the age of majority
Terms of the plan or IRA agreement will specify, but generally:
Death before the required beginning date (RBD)
Five-year rule
Single life expectancy payments
Lump sum
IRA transfer to own IRA "treat as own" (spouse beneficiary only)
Rollover - Spouse EDB may roll over his or her share from an IRA or qualified plan into his/her own IRA or eligible plan
Non-spouse EDB may roll over his or her share of an employer plan to a beneficiary IRA
Death on or after RBD
Single life expectancy payments
Lump sum
IRA transfer to own IRA "treat as own" (spouse EDB only)
Rollover (see above)
Non-spouse beneficiaries who do not qualify as an EDB as listed above (e.g., a child who has reached the age of majority)
Terms of the plan or IRA agreement will specify, but generally:
Timing of death does not matter (i.e., no before or after RBD differentiation)
10-year rule—account depleted within 10 years of death
Lump sum
Rollover−non-EDB may roll over his or her share of an employer plan to a beneficiary IRA, but payout remains subject to the 10-year rule
Non-person beneficiaries
Death before RBD
Lump sum
Five-year rule
Death on or after RBD
Lump sum
Single life expectancy payments
A qualified trust is one that meets the following requirements of Treas. Reg.
1.401(a)(9)-
4, Q&A 5(b).
The trust is valid under state law,
The trust is irrevocable (either during the IRA owner or plan participant’s life or becomes so at his or her death),
The trust has identifiable beneficiaries, and
The trustee of the trust provides the IRA or plan administrator with a copy of the trust instrument (or qualifying trust documentation) by October 31 of the year following the year of the IRA owner or plan participant’s death. EDB—See above
Death before RBD
Lump sum
Five-year rule
Single life expectancy payments
Death on or after RBD
Lump sum
Single life expectancy payments
Rollovers:
Spouse EDB rollover only allowed with a private letter ruling
Non-spouse EDB may roll over his or her share of an employer plan to a beneficiary
Qualified trust—See above
Non-EDB—See above
Timing of death does not matter (i.e., no before or after RBD differentiation
10-year rule
Lump sum
Rollover−Non-EDB may roll over his or her share of an employer plan to a beneficiary IRA with the trust named as beneficiary, but payout remains subject to the 10-year rule
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