Rollover And Withholding Rules Forqualified Plan Distributions: Payment Paid To Surviving Spouses And Other Beneficiaries
Rules that apply to employee distributions (see rollover and withholding rules for qualified plan distributions: payment paid to employee) and that also apply to distributions to surviving spouses of employees and other beneficiaries. The surviving spouse can elect to have an eligible rollover distribution paid into a direct rollover to an individual retirement account (IRA) or to the surviving spouse. If the distribution is paid directly to the surviving spouse, that spouse may retain it or roll it over into an IRA. Beneficiaries other than the surviving spouse cannot elect a direct rollover, and cannot in turn roll over the distribution. Surviving spouse's and other beneficiaries' distributions are not subject to the additional 10% tax penalty, even if they are under the age of 59 1/2.
Popular Insurance Terms
Confirmation by an insurance company of the acts of its agent, regardless of whether or not these acts were committed within the limit of authority granted the agent by the company. By so ...
Feature in a life insurance policy allowing a policyowner to freely assign (give, sell) a policy to another or institution. For example, in order to secure a loan, a bank asks to be ...
Form of inland marine insurance under which an insured is indemnified for damage or destruction of his or her on-premises property if it is due to radioactive material stored or used within ...
Effort of a poor risk to seek insurance coverage. The onset of a health problem such as heart disease, for example, may prompt a person to apply for life insurance before seeking medical ...
Organization that seeks to educate the public on the benefits of private health insurance coverage. Its membership consists of private companies that sell health insurance. The HIAA ...
Exceptions to coverage. There is no obligation for an insurance company to pay a claim if: the loss is not covered by a policy, or a particular person is not included in the definition of ...
Chart showing rate of death at each age in terms of number of deaths per thousand. ...
Fund that comes into existence because premiums for ordinary life insurance policies in their early years are higher than necessary for the pure cost of protection. These excess premiums, ...
New pension-accounting rule created by the Financial Accounting Standards Board. The objective of this rule is to clarify pension accounting so that investors, employers, and employees will ...
Have a question or comment?
We're here to help.