IQVIA Benefits Handbook
BENEFICIARIES AND ALTERNATE PAYEES
The direct rollover rules also apply to payments to a surviving spouse or to a former spouse who is an "alternate payee" under a court order.
  • If you are a surviving spouse, you may elect to have your distribution paid as a direct rollover to an IRA or as a lump sum. If you elect a lump sum payment, you may keep it or roll it over yourself into an IRA, but generally you cannot roll it over into another qualified plan.
  • If you are an alternate payee and former spouse, you are eligible for a lump sum payment. You may elect that the payment be a direct rollover or paid to you. If you elect to have the payment made to you, you may roll over the payment into an IRA or another qualified plan that accepts rollovers.
  • If you are a beneficiary or alternate payee other than the spouse for distributions after December 31, 2009, a non-spouse beneficiary who is a "Designated Beneficiary" may choose a direct rollover, and roll over all or any portion of his or her distribution to an individual retirement account that the beneficiary establishes to receive this distribution.
The 10% early withdrawal penalty does not apply to a distribution made to a beneficiary or an alternate payee. In the event of the death of a beneficiary with an account, a lump sum distribution will be made to his or her estate.