Non-spouse beneficiary rules under PPA

[Guest Peggy806]

I'd appreciate input on whether or not I am interpreting the new rules correctly. This is my interpretation:

A non-spouse bene may roll over the death benefit, but it must be done within one year of the participant's death. The non-spouse bene is still required to either start distributions within one year based on his life expectance or else take the entire amount out as a taxable distribution within 5 years.

I have a person who wants to roll over the distribution to an IRA and not take distributions until he reaches 70 1/2. My interpretation is that he cannot do that.

Is that right?

[J Simmons]

My understanding comports with yours, Peggy806.