Chapter 5 - Rollovers from Employer Plans Example: This year, Ryan inherited his deceased mother's 401(k) funds. The 401(k) plan allows nonspouse beneficiaries to directly roll over to an IRA. Ryan directly rolls over the funds to an inherited Traditional IRA. Because he directly rolled over funds to a Traditional IRA, he has given up the right to convert those funds to a Roth IRA. IRA Digital Reference Manual © PMC