IRS PLR: Taxpayer Eligible to Roll Over Distribution to IRA From Deceased Spouse’s Pension Plan

The IRS issued a Private Letter Ruling on Section 402(c)(9), concluding that taxpayer, as the surviving spouse of the decedent, will be treated as having acquired the lump sum distribution from the pension plan directly, not from the decedent’s estate. The taxpayer is eligible to roll over the distribution into an individual retirement account (IRA) within 60 days of receiving it, pursuant to Section 402(c)(9). To the extent the distribution is timely rolled over to the IRA, it will be excluded from the taxpayer’s gross income for federal income tax purposes in the taxable year it is paid, except in ...