Rollovers Available for Non-Spousal Beneficiaries

Prior to the Pension Protection Act, only spouses could directly roll over beneficiary distributions from an employer-sponsored retirement plan such as the Marathon Oil Company Thrift Plan to an IRA.  The Pension Protection Act now permits, and the Thrift Plan has been amended to allow, a non-spousal beneficiary to directly roll over a distribution from the Plan to an inherited IRA.  Such amounts are then distributed according to the minimum required distribution (MRD) rules applicable to inherited IRAs.

By directly rolling into an inherited IRA, a non-spousal beneficiary may be able to delay taxation of the beneficiary distribution.  Due to the complexity of the rollover provisions, it is important that you consult with your tax advisor to discuss how they apply to your individual circumstances.