Section 35 IAC 8-2-1 - Model amendment languageAuthority: IC 2-3.5-3-4; IC 5-10.3-11-2; IC 5-10.5-4-2; IC 33-13-8-25; IC 33-14-9-10; IC 36-8-8-5
Affected: IC 2-3.5; IC 5-10-5.5; IC 5-10.3; IC 5-10.5; IC 33-13-8; IC 33-14-9; IC 36-8
Sec. 1.
(a) The amendments to this rule required by EGTRRA apply to distributions made on or after January 1, 2002. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this rule, 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 paid directly to an eligible retirement plan specified by the distributee in a direct rollover.(b) The following definitions apply throughout this rule:(1) "Eligible rollover distribution" means 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:(A) any distribution that is one (1) 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 (10) years or more;(B) any distribution to the extent such distribution is required under Section 401(a)(9) of the Code;(C) the portion of any distribution that is not includible in gross income, provided that any portion of any distribution that is not includible in gross income may be an eligible rollover distribution for purposes of a rollover to either: (i) a traditional individual retirement account or individual retirement annuity;(ii) a qualified trust that is part of a plan that is a defined contribution plan that will separately account for the taxable and nontaxable portions of the distribution, in a direct trustee-to-trustee transfer; or(iii) on or after January 1, 2007, a qualified trust that is part of a plan that is a defined benefit plan or an annuity contract described in Section 403(b) of the Internal Revenue Code that will separately account for the taxable and nontaxable portions of the distribution, in a direct trustee-to-trustee transfer; and(D) any distribution that is made upon hardship by the member.(2) "Eligible retirement plan" means: (A) an individual retirement account described in Section 408(a) of the Code;(B) an individual retirement annuity described in Section 408(b) of the Code;(C) an annuity plan described in Section 403(a) of the Code;(D) a qualified trust described in Section 401(a) of the Code;(E) an eligible deferred compensation plan under Section 457(b) of the Code that is maintained by a state, a political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state (so long as the plan agrees to separately account for amounts rolled into the plan); or(F) an annuity contract under Section 403(b) of the Code; that accepts the distributee's eligible rollover distribution.(3) "Distributee" includes an employee or former employee, as well as the employee's or former employee's surviving spouse. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, is a distributee with regard to the interest of the spouse or former spouse.(4) "Direct rollover" means a payment by the plan to the eligible retirement plan specified by the distributee.Board of Trustees of the Indiana Public Retirement System; 35 IAC 8-2-1; filed Mar 23, 1995, 3:00 p.m.: 18 IR 1993; errata, 18 IR 2412; readopted filed Oct 31, 2001, 2:21 p.m.: 25 IR 898; filed Jul 14, 2004, 9:35 a.m.: 27 IR 3869; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Jun 29, 2012: 20120718-IR-035120397ONA