Which distributions are eligible for rollover treatment?

The correct choice highlights the distribution from a deceased spouse's plan, which can indeed qualify for rollover treatment. Under tax regulations, when a surviving spouse receives a distribution from a deceased partner’s qualified retirement plan or IRA, they have the option to rollover that distribution into their own IRA. This is advantageous because it allows the surviving spouse to defer taxes on the distribution until they withdraw funds from their own IRA. Rollover treatment enables the funds to continue growing tax-deferred, which is a significant benefit for estate and financial planning.

To clarify the context surrounding the other options, a required minimum distribution (RMD) for someone aged 73 is mandated by law and cannot be rolled over; the individual must take the distribution as a taxable event. A hardship distribution from a qualified plan is also not eligible for rollover treatment, as these withdrawals are made to meet immediate and heavy financial needs. Excess deferrals due to over-contributions are generally required to be withdrawn by the tax-filing deadline to avoid penalties, but such distributions usually do not qualify for rollover treatment either, as they are viewed differently under tax rules.

Understanding these distinctions is critical when planning for retirement and managing distributions effectively.