Defined Benefit plan lump sum payable to estate

I have a client who is the widow of a defined plan partipant. The plan will only pay the lump sum balance of the deceased partipant to his estate. Can she disclaim for the estate and roll it over into an IRA as the only beneficiary of the estate?



Generally, yes. Here is an article by Bruce Steiner covering this issue in detail. It is still largely valid even though written 11 years ago.

http://www.kkwc.com/docs/AR20050125164755.pdf

He may comment if any changes have occurred.

The estate can’t disclaim it. But if she’s entitled to the entire estate, she should be able to get a private letter ruling allowing her to roll it over.

If she was named bene, she should get it whether it is lump sum or not!

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