If the proceeds of a pension plan are being distributed and the original beneficiary dies: the person who inherits the plan assets can elect to be treated as the original beneficiary if that person is the spouse of the original beneficiary. the person who inherits the plan assets can elect to be treated as the original beneficiary if that person is unrelated to the original beneficiary. the person who inherits the plan assets will receive the remaining plan assets tax-free. the balance of the pension plan assets must be distributed in the year of death. Regarding a full or partial rollover of assets from one retirement plan to another retirement plan: rollovers are normally taxable to the beneficiary. rollovers are permitted only in unusual circumstances. a tax-free rollover can be made from a traditional IRA to another traditional IRA. a tax-free rollover can be made from a traditional IRA to a Roth IRA