New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 7 - ALTERNATE BENEFIT PROGRAM
Subchapter 12 - NEW JERSEY ADDITIONAL CONTRIBUTIONS TAX-SHELTERED PROGRAM (ACTS)
Section 17:7-12.13 - Direct rollovers
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Notwithstanding any provision of the ACTS to the contrary that would otherwise limit a distributee's election, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution that is equal to at least $ 500.00 paid directly to an eligible retirement plan specified by the distributee in a direct rollover. If an eligible rollover distribution is less than $ 500.00, a distributee may not make the election set forth in this section to roll over only a portion of the eligible rollover distribution.
(b) Definitions. For purposes of this section, the following definitions apply.
"Direct rollover" means a payment by the ACTS to the eligible retirement plan specified by the distributee.
"Distributee" includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employees' spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in IRC § 414(p), are distributees with regard to the interest of the spouse or former spouse. A distributee also includes the participant's nonspouse designated beneficiary. In the case of a nonspouse beneficiary, the direct rollover may be made only to an individual retirement account or annuity described in IRC § 408(a) or (b) (IRA) that is established on behalf of the beneficiary and that will be treated as an inherited IRA pursuant to the provisions of IRC § 402(c)(11). The determination of any required minimum distribution under IRC § 401(a)(9) that is ineligible for rollover shall be made in accordance with IRS Notice 2007-7, Q&A-17 and 18, 2007 I.R.B. 395.
"Eligible retirement plan" means a qualified plan described in IRC § 401 (a), an annuity plan described in IRC § 403(a), an annuity contract described in IRC § 403(b), an individual retirement account or annuity described in IRC § 408(a) or (b), a Roth individual retirement plan under IRC § 408A, or an eligible plan under IRC § 457(b), which is maintained by a state and which agrees to separately account for amounts transferred into such plan from the ACTS, that accepts the distributee's eligible rollover distribution. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order as defined in IRC § 414(p).
"Eligible rollover distribution" means any distribution of all or any portion of the distributee's account balance, except that an eligible rollover distribution does not include:
A portion of a distribution shall 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 to an individual retirement account or annuity described in IRC § 408(a) or (b), or by direct rollover to a qualified plan described in IRC § 401(a) or a tax-sheltered annuity described in IRC § 403(b) that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that is not includible.
(c) Each pension provider shall provide, within a reasonable time period before making an eligible rollover distribution, a written explanation to the participant that satisfies the requirements of IRC § 402(f).
(d) This subsection shall apply to the Roth elective deferrals.