(a) As used in this
section:
(1) "Participant" has the same
meaning as provided in section 31-416 of the Connecticut General
Statutes;
(2)"Program"? has the
same meaning as provided in section 31-416 of the Connecticut General Statutes;
and
(3)"Program administrator"?
means the third-party administrator selected by the Comptroller to assist in
carrying out the requirements of sections 31-416 to 31-429, inclusive, of the
Connecticut General Statutes.
(b) A participant may request a distribution
of all or a portion of the funds from the participant's individual retirement
account maintained through the program, as permitted or required by the program
and any applicable provisions of the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United States, as amended
from time to time, at any time by mailing a request to the program
administrator on such form or forms as prescribed by the program administrator.
A participant may also request such a distribution by phone or online in such
manner as prescribed by the program administrator.
(c) Distributions may be subject to state and
federal income tax obligations and penalties for early withdrawal.
Statement of Purpose :
The proposed new regulation sets forth provisions governing the
distribution of funds from the Connecticut Retirement Security Program. It is
required by Section 31-424 of the Connecticut General Statutes.
A. The problems, issues or circumstances that
the regulation proposes to address. Participants in the program have the right
to receive distributions of the funds from their individual retirement accounts
established and maintained by the program at any time. Section 31-424 of the
Connecticut General Statutes was amended by Public Act 22-118 to require the
Comptroller to adopt regulations governing the distribution of funds from the
program. The new proposed regulation provides the methods by which participants
can request a distribution of funds from their accounts.
B. Summary of the main provisions of the
proposed regulation. The main provisions of the new proposed regulation provide
the methods by which a participant in the program can request a distribution of
funds. The new proposed regulation also provides that there may be tax
obligations and penalties associated with such distribution.
C. The legal effects of the regulation,
including all ways that the regulation would change existing regulations or
other laws . The new proposed regulation is mandated by the statutes governing
the Connecticut Retirement Security Program. It does not change existing
regulations or other laws.
