non spouse beneficiary

[Gary]

A DB plan provides for the 5 year rule for payment to a non spouse beneficiary.

If say a participant dies on July 1, 2010 at age 65 (i.e. < RBD) can the adult child beneficiary choose to roll over the death benefit (act equiv of pension) of 100k to an inherited IRA prior to 12/31/2011 and begin receiving payments over their life expectancy?

Say this same individual has an IRA could the IRA become an inherited IRA to adult child and be paid in same manner as above?

Thanks.

[Bird]

If say a participant dies on July 1, 2010 at age 65 (i.e. < RBD) can the adult child beneficiary choose to roll over the death benefit (act equiv of pension) of 100k to an inherited IRA prior to 12/31/2011 and begin receiving payments over their life expectancy?

Yes, I think the plan could roll over 100% in 2011 because it doesn't know at that point if the bene will take an RMD in 2011 or wait the five years. The bene could start the RMDs from the IRA in 2011.

Say this same individual has an IRA could the IRA become an inherited IRA to adult child and be paid in same manner as above?

Sort of. I think the term "inherited IRA" means an IRA that is set up by a beneficiary to accept a qualified plan rollover. If you inherit an IRA, that IRA can stay in the name of the decedent and be paid out the same way.