Your surviving spouse may elect to have the entire taxable amount, or only a portion, of his or her lump-sum death benefit rolled over to an eligible retirement plan in order to avoid having 20% federal taxes withheld.
If your beneficiary is someone other than a spouse, the death benefit is eligible for a rollover, or the beneficiary may choose whether or not to have 10% federal taxes withheld from the payment. Monthly annuity payments are not eligible for rollover.