When a NYCERS member dies and their spouse inherits their benefit, the surviving spouse will receive the deceased member's accumulated contributions, which are taxable as part of the death benefit, and the spouse can choose to roll over the funds into an IRA or other retirement account.
In addition, if she chooses to roll over to an IRA, she will be able to treat the IRA as her own or as an inherited IRA.
After-tax contributions to NYCERS, also known as non-414(h) contributions, are not subject to taxation a second time when paid out to a surviving spouse, as they were already taxed when deducted from the member's paycheck.
Click here for additional NYCERS information. See page 3 under Payments after death of the participant, if you are a surviving spouse.
Click here for "NYCERS Survivor Benefits"
Click here for "PROCESSING DEATH BENEFITS NYCERS"
{Edited 03/11/2025|08:33 AM PST}
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