We have been following the Non-Spouse Rollover Rule Changes since the passage of the PPA. The Pension Protection Act Blog notes that Rollovers to NonSpouse Beneficiaries Are Back With Passage of H.R. 3361 But For 2009 Instead of 2008:

Last week, the House of Representatives finally passed H.R. 3361, the Pension Protection Technical Corrections Act of 2008 (PPTCA). Since the Senate passed their version of the PPTCA, S. 1974, late last year, the Senate should make quick work of reconciling the differences between their bill and H.R. 3361, and have a version of PPTCA ready for the President to sign as early as mid-April.

For rollovers to nonspouse beneficiaries, the passage of H.R. 3361 has significant impact because of the IRS' position on rollovers to nonspouse beneficiaries.

The rule change is part of H.R. 3361: Pension Protection Technical Corrections Act of 2007, which was passed by the House of Representatives on March 12, 2008. Since the Senate passed a similar version, S. 1974: Pension Protection Technical Corrections Act of 2007, on December 19, 2007, it appears the bills could be reconciled and passed in the near future. This legislation is discussed further in House of Representatives Moves Forward on Pension Protection Technical Corrections Act.

Updates/Related Blog Posts:

• Rollovers to Roth IRAs/402(f) Safe Harbor Notice (1/24/08)
• Non-Spouse Rollover Rule Changes (1/22/08)
• Are nonspouse beneficiary rollovers required? (12/27/07)
• Non-spouse Beneficiary Rollovers (2/9/07)
• ERISA Compliance Calendar/PPA/Notice 2007-07 (1/19/07)
• Update on 409(p) Final Regulations and Notice 2007-07 (1/16/07)
• Miscellaneous Pension Protection Act Changes (1/11/07)
• Rollovers to Roth IRAs/402(f) Safe Harbor Notice (1/24/08)

Related Links:

• H.R. 3361: Pension Protection Technical Corrections Act of 2007
• S. 1974: Pension Protection Technical Corrections Act of 2007
• Employee Plans News - Special Edition, February 13, 2007
• IRS Notice 2007-7, 2007-5 I.R.B. 395 - Miscellaneous Pension Protection Act Changes
• The Pension Protection Act of 2006 (PPA)
  

• BenefitsLink Message Boards - NonSpouse Rollovers, Mandatory in 08?
  
• IRA Update: Mandatory or Voluntary? Congress Creates More Confusion on the Non-Spouse Rollover Provision under PPA 2006
• Good news gone awry - New retirement-plan rule was good news for beneficiaries, until IRS stepped in
• Revisiting Rollovers to NonSpouse Beneficiaries Before 2008
• 2007 Interim and Discretionary Amendments
• Nonspouse Beneficiary Rollover Document Change
• Definition of Spouse
• Update on Interim Amendments and EGTRRA Restatements