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Why not? See the section on "Rollovers by nonspouse beneficiary" on page 28.

Because of the type of payment. As I read the list of payments that can be rolled over, it's payments made to the beneficiary instead of to the employee. A death benefit would never be paid to an employee. My father received a death benefit from the Kansas retirement system, and I received one from the Illinois retirement system. In neither case was a rollover option ever mentioned.

I will grant that OP's situation may be different. If the plan is sending information about a rollover option, as described on page 28, I'd probably say "go for it." In that case, OP starts the process by contacting the potential custodian for the inherited IRA since this must be done as a direct transfer.

Rule Your Retirement Home Fool
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