Rules that apply to employee distributions (see rollover and withholding rules for qualified plan distributions: payment paid to employee) and that also apply to distributions to surviving spouses of employees and other beneficiaries. The surviving spouse can elect to have an eligible rollover distribution paid into a direct rollover to an individual retirement account (IRA) or to the surviving spouse. If the distribution is paid directly to the surviving spouse, that spouse may retain it or roll it over into an IRA. Beneficiaries other than the surviving spouse cannot elect a direct rollover, and cannot in turn roll over the distribution. Surviving spouse's and other beneficiaries' distributions are not subject to the additional 10% tax penalty, even if they are under the age of 59 1/2.