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Dates of Death and Spousal Rollovers
Chapter 4
Including Dates of Death and Spousal Rollovers
Use the Beneficiary Info dialog box to handle the death of either the plan owner, the
beneficiary, or both. Also, for cases in which the plan owner dies, you can indicate when
a spousal rollover will occur. To enter dates of death and spousal rollovers, check the
Assume Death Occurs check box and the Benef. Info button in the Main window.
For Roth IRAs, the Assume Death Occurs checkbox is checked automatically (and
hidden). In that case, just click the Beneficiary Info button.
The Beneficiary Information window asks you a series of simple questions:
Assume Owner Dies?
Assume Beneficiary Dies?
Assume Spouse Rollover?
Does the Spouse Name a Beneficiary?
The software only asks you those questions which are relevant to your case. For
example, if the beneficiary is not the spouse, it won’t ask you if there’s a spousal
rollover.
There is a checkbox next to each year input field on this window. Check the box to have
the software calculate the year. Uncheck it to enter in your own year.
Multiple Beneficiaries and Separate Accounts Rule
You may not use separate life expectancies for multiple beneficiaries unless all of the
beneficiaries are individuals and you have satisfied the separate accounts rule. If all of the
beneficiaries are individuals, but the separate accounts rule has NOT been met, all of the
beneficiaries must use the oldest beneficiary's life expectancy for required minimum
distributions. Under the regulations, a separate account “is a portion of an employee’s
benefit determined by an acceptable separate accounting including allocating investment
gains and losses, and contribut ions and forfeitures, on a pro rata basis in a reasonable and
consistent manner between such portion and any other benefits.”
If the plan is being split between multiple beneficiaries at death, enter their names, what
percentage of the plan each receives, and their birth years.
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