Qualified Settlement Fund

[JRN]

Participant is a former employee of Lockheed Martin. He will be receiving a settlement check relating to fiduciary breach (excessive fee litigation) by Lockheed Martin plan fiduciaries. Fiduciaries are paying settlement into a Qualified Settlement Fund (QSF). The check to the participant is coming from the QSF. Participant asks "Can I rollover the check into my new employer's qualified plan?"

Seems to me that because the check is not coming from the Lockheed Martin plan, the distribution cannot be rolled over. I'm thinking that this check will simply be taxable income to the participant.

This seems like it should be a rather common question, considering the amount of excessive fee litigation going on right now, but I can't find a definitive answer.

Any thoughts? Thanks.