Non-spousal beneficiary rollovers

January 17, 2007

The Pension Protection Act Technical Corrections bill, S. 1974 passed by the Senate on Dec. 19, 2007, contained a provision to make mandatory the non-spousal beneficiary rollover option. The House has yet to pass this technical correction and the Treasury and IRS have said that they will not anticipate the change by issuing preliminary guidance. Consequently, we will need to await final legislative action on Technical Corrections. The PPA made the provision optional for employers. Read ICMA-RC's section on the Pension Protection Act of 2006 for more information.