(1) The following
definitions apply to
941
CMR 3.03:
Direct Rollover. A payment by the
Board to the Eligible Retirement Plan specified by the Distributee in a manner
satisfying 26 I.R.C. § 401(a)(31).
Distributee. Any employee or former
employee, as well as the employee's or former employee's surviving spouse (as
defined by federal law), or to a spouse or former spouse who is an alternate
payee (as defined by 26 I.R.C. § 414(p)), who is entitled to an Eligible
Rollover Distribution from the Board. Effective January 1, 2007, a Distributee
also includes a non-spousal beneficiary who is a designated beneficiary under
26 I.R.C. § 401(a)(9)(E) and is entitled to an Eligible Rollover
Distribution from the Board, but only with respect to an Eligible Retirement
Plan that is an individual retirement account under 26 I.R.C. § 408(a) or
an individual retirement annuity under 26 I.R.C. § 408(b) (other than an
endowment contract), or a Roth IRA under 26 I.R.C. § 408A, established for
the purpose of receiving the distribution and the account or annuity will be
treated as an inherited account or annuity.
Eligible Retirement Plan. Any of the
following programs that accepts the Distributee's Eligible Rollover
Distribution:
(a) an individual
retirement account under 26 I.R.C. § 408(a);
(b) an individual retirement annuity under 26
I.R.C. § 408(b), other than an endowment contract;
(c) a qualified plan under 26 I.R.C. §
401(a) or § 403(a);
(d) an
eligible deferred compensation plan under 26 I.R.C. § 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
26 I.R.C. § 403(b);
(f) for
distributions on or after January 1, 2008, a Roth IRA; and
(g) for distributions after December 18,
2015, a SIMPLE IRA under 26 I.R.C. § 408(p) that has been established for
at least two years.
Eligible Rollover Distribution. Any
distribution under M.G.L. c. 32 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 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
years or more;
(b) any distribution
to the extent such distribution is required under 26 I.R.C. § 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 a traditional individual retirement
account or individual retirement annuity, or to a qualified trust which is a
defined contribution plan that will separately account for the taxable and
nontaxable portions of the distribution; or
2. effective on or after January 1, 2007, to
a qualified trust which is a defined benefit plan or a 403(b) tax-sheltered
annuity that will separately account for the taxable and nontaxable portions of
the distribution;
3. effective on
or after January 1, 2008, to a Roth IRA under 26 I.R.C. § 408A;
or
4. effective after December 18,
2015, a SIMPLE IRA under 26 I.R.C. § 408(p) that has been established for
at least two years.
(2) 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.
