Non-Spouse Rollover Rules

Posted by Aaron Juckett, CPA, CPC, QPA, QKA on Wed, Mar 26, 2008
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We have been following the Non-Spouse Rollover Rule Changes since the passage of the PPA. The Pension Protection Act Blog notes that Rollovers to NonSpouse Beneficiaries Are Back With Passage of H.R. 3361 But For 2009 Instead of 2008:

Last week, the House of Representatives finally passed H.R. 3361, the Pension Protection Technical Corrections Act of 2008 (PPTCA). Since the Senate passed their version of the PPTCA, S. 1974, late last year, the Senate should make quick work of reconciling the differences between their bill and H.R. 3361, and have a version of PPTCA ready for the President to sign as early as mid-April.

For rollovers to nonspouse beneficiaries, the passage of H.R. 3361 has significant impact because of the IRS' position on rollovers to nonspouse beneficiaries.

The rule change is part of H.R. 3361: Pension Protection Technical Corrections Act of 2007, which was passed by the House of Representatives on March 12, 2008. Since the Senate passed a similar version, S. 1974: Pension Protection Technical Corrections Act of 2007, on December 19, 2007, it appears the bills could be reconciled and passed in the near future. This legislation is discussed further in House of Representatives Moves Forward on Pension Protection Technical Corrections Act.

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Topics: legislation, rules and regulations, Information Page

Aaron Juckett, CPA, CPC, QPA, QKA
Written by Aaron Juckett, CPA, CPC, QPA, QKA

Aaron is President and Founder of ESOP Partners and provides implementation, administration, and consulting services to hundreds of companies. He is a member of The ESOP Association (TEA) and the National Center for Employee Ownership (NCEO).

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