What happens to my 403(b) contributions if I should die?
The balance in your 403(b) plan would go to your designated beneficiary, which is why it is very important to keep your beneficiary designations up-to-date. Spouse beneficiaries can roll over the distribution into an IRA and treat it as their own. Nonspouse beneficiaries can roll over the distribution into an IRA, but it is considered an inherited IRA. In this case, special IRS rules apply to the distribution schedule. Generally, the nonspouse beneficiary can stretch out distributions and subsequent tax payments over his or her own life expectancy.
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