Children who inherit a 401 (k) can roll it over into a Roth IRA
The IRS has given families a little more flexibility in handling a 401 (K) and pension plans. According to an IRS announcement, children who inherit a 401 (k) or pension plan can now roll it over directly into a Roth IRA. Before, a spouse who inherited a 401 (k) or pension plan could roll it over into a Roth IRA, but this was not true for a beneficiary other than a spouse, such as a child.