Can You Transfer Amounts or Change Beneficiaries?

Amounts can be transferred to other QTPs and beneficiaries can be changed.

Amounts in a QTP can be transferred tax free to the QTP of another beneficiary. The transfer must be completed within 60 days of the distribution and the other beneficiary must be a family member (as defined later) of the beneficiary from whose program the transfer is made.

Starting in 2002, amounts in a QTP of one beneficiary can be transferred tax free to another QTP for the same beneficiary. However, the transfer (rollover) of credits or other amounts from one QTP to another QTP for the benefit of the same beneficiary cannot apply to more than one transfer within any 12-month period for the same beneficiary.

The beneficiary of a QTP can be changed. However, the new beneficiary must be the existing beneficiary's spouse or one of the family members listed next.

Family members. If the beneficiary does not use amounts in the QTP, the amounts can be transferred tax free to the beneficiary's spouse or any of the following other members of the beneficiary's family.

1. Son or daughter or descendant of son or daughter.
2. Stepson or stepdaughter.
3. Brother, sister, stepbrother, or stepsister.
4. Father or mother or ancestor of either.
5. Stepfather or stepmother.
6. Son or daughter of a brother or sister.
7. Brother or sister of father or mother.
8. The spouse of any individual listed above.

Beginning in 2002, for purposes of tax free transfers (rollovers) and changes of designated beneficiaries, the definition of family members is expanded to include first cousins of the beneficiary.

Previous| First | Next

Publication Index | IRS-Forms Main | Home