Current through Register 1531, September 27, 2024
(1) A Distributee
may elect, at the time and in the manner prescribed by the Board, to have any
portion of an Eligible Rollover Distribution paid directly to an Eligible
Retirement Plan specified by the Distributee in a Direct Rollover. The
following definitions shall apply to 807 CMR 12.01.
(2)
Direct Rollover
is a payment by the Board to the Eligible Retirement Plan specified by the
Distributee.
(3)
Distributee includes an employee or former employee,
as well as the employee's or former employee's surviving spouse, or a spouse or
former spouse who is an alternate payee (as defined by Internal Revenue Code
Section 414(p)), and, effective January 1, 2007, a non-spousal beneficiary who
is a designated beneficiary under Internal Revenue Code Section 401(a)(9)(E).
However, a non-spousal beneficiary may only make a direct rollover to an
eligible retirement plan described in 807 CMR 12.01(4)(a), (b) or (f)
established for the purpose of receiving the distributions and the account or
annuity will be treated as an inherited account or annuity.
(4)
Eligible Retirement
Plan is any program defined in Internal Revenue Code Sections
401(a)(31) and 402(c)(8)(B), that accepts the Distributee's Eligible Rollover
Distribution, as follows:
(a) an individual
retirement account under Internal Revenue Code Section 408(a);
(b) an individual retirement annuity under
Internal Revenue Code Section 408(b) (other than an endowment
contract);
(c) a qualified plan
under Internal Revenue Code Section 401(a) or an annuity plan under Internal
Revenue Code Section 403(a);
(d) an
eligible deferred compensation plan under Internal Revenue Code Section 457(b)
which is maintained by a state, a political subdivision of a state, or any
agency or instrumentality of a state or a political subdivision of a state (so
long as the plan agrees to separately account for amounts rolled into the
plan);
(e) an annuity contract
under Internal Revenue Code Section 403(b); and
(f) for distributions on or after January 1,
2008, a Roth IRA under Internal Revenue Code Section 408A.
(5)
Eligible Rollover
Distribution is any distribution under M.G.L. c. 32, §§
1 through 28 of all or any portion of the balance to the credit of the
Distributee, except that an Eligible Rollover Distribution does not include:
(a) any distribution that is one of a series
of substantially equal periodic payments (not less frequently than annually)
made for the life (or 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 years or
more;
(b) any distribution to the
extent such distribution is required under Internal Revenue Code Section
401(a)(9); or
(c) the portion of
any distribution that is not includible in gross income, however, effective for
distributions on or after 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:
1. to an individual retirement account or
individual retirement annuity, under Internal Revenue Code Sections 408(a) or
408(b), or to a qualified defined contribution plan under Internal Revenue Code
Section 401(a) that will 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
2. effective on or after January 1, 2007, to
a qualified defined benefit plan under Internal Revenue Code Section 401(a) or
to an annuity contract under Internal Revenue Code Section 403(b) 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
3. effective on or
after January 1, 2008, to a Roth IRA under Internal Revenue Code Section
408A.
