Current through Vol. 42, No. 1, September 16, 2024
(a) Notwithstanding any other provision of
the administrative code that otherwise would limit a distributee's election to
make a direct rollover, a distributee may elect at the time and in the manner
prescribed by the Board of Trustees to have all or a portion of an eligible
rollover distribution paid directly to another eligible retirement plan as a
direct rollover as required under Internal Revenue Code Section 401(a)(31) and
the regulations thereto.
(b) The
following definitions shall apply for purposes of the words and phrases used in
this Section:
(1) An "eligible rollover
distribution" includes any distribution of all or any portion of the balance to
the credit of the distributee, except that an eligible rollover distribution
does not include the following:
(A) any
distribution that is one of a series of substantially equal periodic payments,
paid 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 joint annuitant .
(B) any distribution that is one of a series
of substantially equal periodic payments for a specified period of ten years or
more.
(C) any distribution to the
extent such distribution is required under Internal Revenue Code Section
401(1)(9).
(D) the portion of any
distribution that is not includable in gross income.
(E) any distributions during a year that are
reasonably expected to total less than $200.
(F) Effective January 1, 2002, the definition
of eligible rollover distribution also includes a distribution to a surviving
spouse, or to a spouse or former spouse who is an alternate payee under a
qualified domestic relations order, as defined in Internal Revenue Code Section
414(p) and OAC
715:10-25-1.
(G) 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
(i) to an individual retirement account or
annuity described in Internal Revenue Code Section 408(a) or (b) or to a
qualified defined contribution plan described in Internal Revenue Code Section
401(a) 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;
(ii) on or after January 1, 2007, to a
qualified defined benefit plan described in Internal Revenue Code Section
401(a) or to an annuity contract described in 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
(H) on or after January 1, 2008, to a Roth
IRA described in Internal Revenue Code Section 408A.
(2) An "eligible retirement plan" includes
any of the following that accepts the distributee's eligible rollover
distribution:
(A) an individual retirement
account described in Internal Revenue Code Section 408(a);
(B) an individual retirement annuity
described in Internal Revenue Code Sections 408 (b);
(C) an annuity plan described in Internal
Revenue Code Section 403(a);
(D) a
qualified trust described in Internal Revenue Code Section 401(a);
(E) effective January 1, 2002, an annuity
contract described in Internal Revenue Code Section 403(b);
(F) effective January 1, 2002, a plan
eligible under Internal Revenue Code Section 457(b) 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
(G) effective January 1, 2008, a
Roth IRA described in Internal Revenue Code Section 408A.
(3) A "distributee" means a member, a
member's spouse, or a member's former spouse who is the alternate payee under a
qualified domestic order, as defined in Internal Revenue Code Section 414(p)
and OAC 715:10-25-1. Before January 1,
2002, in the case of an eligible rollover distribution to the member's spouse,
an eligible retirement plan only includes an individual retirement account or
an individual retirement annuity described in Internal Revenue Code Sections
408(a) or (b). Effective January 1, 2007, a distributee further includes a
nonspouse beneficiary who is a designated beneficiary as defined by Internal
Revenue Code Section 401(a)(9)(E). 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 will be treated as an "inherited" individual retirement account or
annuity.
(4) "Direct rollover"
means a payment by the plan to the eligible retirement plan specified by the
distributee.
(c)
Eligible rollover distributions may be paid to not more than two eligible
retirement plans, as selected by the distributee, when a direct rollover is
elected.
Added at 11 Ok Reg 4785,
eff 9-12-94 through 7-14-95 (emergency)1; Added at
12 Ok Reg 3285, eff 7-27-95; Amended at 26 Ok Reg 318, eff 11-12-08
(emergency); Amended at 26 Ok Reg 2379, eff
6-25-09
1This emergency action expired
before being superseded by a permanent action. Upon expiration of an emergency
action enacting a new Section, the Section is no longer effective. Therefore,
on 7-15-95 (after the 7-14-95 expiration of the emergency action), the text of
section 715:10-11-7 was no longer effective, and remained as such until added
by permanent action on 7-27-95.
