Current through March 20, 2024
Authority: IC 2-3.5-3-4; IC 5-10-5.5-3; IC 5-10.5-4-2; IC
33-38-6-23; IC 33-39-7-11; IC 36-8-8-5
Affected: IC 2-3.5-3-5; IC 5-10-5.5; IC 5-10.2-2-14; IC
5-10.2-3-10; IC 5-10.3; IC 5-10.4-4-12; IC 5-10.5; IC 33-38-6-24; IC
33-39-7-24; IC 36-8-8-17
Sec. 1.
(a) The
definitions in this section apply throughout this article.
(b) "Board of trustees" means the board of
trustees of the Indiana public retirement system (INPRS).
(c) "Direct rollover" means a payment by a
fund to the eligible retirement plan specified by the distributee.
(d) "Distributee" means an employee or former
employee. It also includes the employee's or former employee's surviving spouse
and the employee's or former employee's spouse. Effective January 1, 2009, a
distributee further includes a nonspouse beneficiary who is a designated
beneficiary as defined by Section 401(a)(9)(E) of the Internal Revenue Code.
However, a nonspouse beneficiary may rollover the distribution only to an
individual retirement account or individual retirement annuity (or, effective
January 1, 2008, a Roth IRA) established for the purpose of receiving the
distribution, and the account or annuity must be treated as an inherited
individual retirement account or annuity.
(e) "Eligible retirement plan" means any of
the following that accepts the distributee's eligible rollover distribution
from a fund:
(1) an individual retirement
account described in Section 408(a) of the Internal Revenue Code;
(2) an individual retirement annuity
described in Section 408(b) of the Internal Revenue Code;
(3) an annuity plan described in Section
403(a) of the Internal Revenue Code;
(4) a qualified trust described in Section
401(a) of the Internal Revenue Code;
(5) effective January 1, 2002, an annuity
contract described in Section 403(b) of the Internal Revenue Code;
(6) effective January 1, 2002, a plan
eligible under Section 457(b) of the Internal Revenue Code that is maintained
by a state, political subdivision of a state, or any agency or instrumentality
of a state or a political subdivision of a state that agrees to separately
account for amounts transferred into that plan from the retirement system;
or
(7) effective January 1, 2008, a
Roth IRA described in Section 408A of the Internal Revenue Code.
(f) "Eligible rollover
distribution" means any distribution of all or any portion of the balance to
the credit of the contribution account [sic] from a fund,
except that an eligible rollover distribution does not include the following:
(1) any distribution that is one (1) of a
series of substantially equal periodic payments (not less frequently than
annually) made for the life (or the life expectancy) of the distributee or the
joint lives (or joint life expectancies) of the distributee and the
distributee's designated beneficiary, or for a specified period of ten (10)
years or more;
(2) any distribution
to the extent such distribution is required under Section 401(a)(9) of the
Internal Revenue Code;
(3) the
portion of any distribution that is not includible in gross income;
and
(4) any other distribution that
is reasonably expected to total less than two hundred dollars ($200) during the
year.
(5) Effective January 1,
2002, a portion of a distribution will not fail to be an eligible rollover
distribution merely because the portion consists of after-tax employee
contributions that are not includible in gross income. However, such portion
may be transferred only:
(A) to an individual
retirement account or annuity described in Section 408(a) or (b) of the
Internal Revenue Code or to a qualified defined contribution plan described in
Section 401(a) of the Internal Revenue Code that agrees to separately account
for amounts so transferred (and earnings thereon), including separately
accounting for the portion of the distribution that is includible in gross
income and the portion of the distribution that is not so includible;
(B) on or after January 1, 2007, to a
qualified defined benefit plan described in Section 401(a) of the Internal
Revenue Code or to an annuity contract described in Section 403(b) of the
Internal Revenue Code, that agrees to separately account for amounts so
transferred (and earnings thereon), including separately accounting for the
portion of the distribution that is includible in gross income and the portion
of the distribution that is not so includible; or
(C) on or after January 1, 2008, to a Roth
IRA described in Section 408A of the Internal Revenue Code.
(6) Effective January 1, 2002, the
definition of eligible rollover distribution also includes a distribution to a
surviving spouse or to a spouse.
(g) "Fund" or "funds" means the legislators'
retirement system, public employees' retirement fund, state excise police,
gaming agent, gaming control officer and conservation enforcement officers'
retirement plan, judges' retirement fund, 1977 police officers' and
firefighters' pension and disability fund, the prosecuting attorneys'
retirement fund, the teachers' retirement fund, and funds funded through the
pension relief fund.
Transferred from the Board of Trustees of the Indiana State
Teachers' Retirement Fund ( 550 IAC 3-3-1 ) to the Board of Trustees of the
Indiana Public Retirement System ( 35 IAC 15-1-1 ) by P.L. 23-2011, SECTION 22,
effective July 1, 2011.
