The Pension Protection Act of 2006 (the "PPA") created a new rollover opportunity for non-spouse designated beneficiaries under qualified retirement plans (including 401(k) plans), 403(b) annuity plans and governmental 457 plans. The new provision allows a non-spouse designated beneficiary who receives a plan distribution after December 31, 2006 upon the death of the participant to roll over the distribution directly into an individual retirement account ("IRA"). The rollover IRA must be treated as an inherited IRA under the tax code.
