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As a non-spouse beneficiary, you do not have the option of rolling the proceeds over into another qualified plan or an IRA, and hence, the proceeds will be taxable to you when received. There will not be a "10% excise tax" applicable in this situation (as a result of the distribution being on account of death), but there will be normal income taxes. The timing of the distribution (and hence of the tax consequences) is a different matter, and to some extent depends on the amount, and other factors involved. If the amount of the distribution is under $5,000, the plan sponsor can force you to take a distribution immediately, otherwise, you may have some options to defer the distribution for a certain period. Check back with the plan sponsor and the administrator, and then talk to a tax advisor - the rules can be confusingly complex, and are probably beyond the scope of this board.

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