La. Admin. Code tit. 32 § VII-721

Current through Register Vol. 50, No. 9, September 20, 2024

Section VII-721 - Transfers and Rollovers Catch-Up

A. Transfers Into the Plan. At the direction of the employer, the administrator may permit a class of participants who are participants in another eligible governmental plan under code §457(b) to transfer assets to the plan. Such a transfer is permitted only if the other plan provides for the direct transfer of each participant's interest therein to the plan. The administrator may require in its sole discretion that the transfer be in cash. The administrator may require such documentation from the other plan as it deems necessary to effectuate the transfer in accordance with code §457(e)(10) and treasury regulation §1. 457-10(b) and to confirm that the other plan is an eligible governmental plan as defined in treasury regulation §1. 457-2(f). The amount so transferred shall be credited to the participant's account balance and shall be held, accounted for, administered and otherwise treated in the same manner as an annual deferral by the participant under the plan, except that the transferred amount shall not be considered an annual deferral under the plan in determining the maximum deferral under article III.

B. In-Service Transfers from the Plan. If a participant becomes a participant in another governmental eligible deferred compensation plan, and provided that payments under this plan have not begun, such participant may request a transfer of his or her account to the other eligible deferred compensation plan. Requests for such transfers must be made in writing to the commission and shall be granted in the sole discretion of the commission. If an amount is to be transferred pursuant to this provision, the commission shall transfer such amount directly to the other eligible governmental deferred compensation plan. Amounts transferred to another eligible governmental deferred compensation plan shall be treated as distributed from this plan and this plan shall have no further responsibility to the participant or any beneficiary with respect to the amount transferred.

C.Section 3121 Participant Transfers. If a participant was formerly a section 3121 participant, then the plan shall accept assets representing amounts deferred under §323 of this plan, provided the participant remains an employee.

D. Rollovers to the Plan

1. The plan shall accept a rollover contribution on behalf of a participant or employee who may become a participant. A rollover contribution, for purposes of this Subsection, is an eligible rollover contribution (as defined in IRC §402(f)(2)) from any:

a. plan qualified under IRC §401(a) or 403(a);

b. tax-sheltered annuity or custodial account described in IRC §403(b);

c. individual retirement account or annuity described in IRC §408;

d. eligible deferred compensation plan described in IRC §457(b)

2. Prior to accepting any rollover contribution, the commission must reasonably conclude, after a good faith effort, that the amount to be rolled over to the plan is a valid rollover within the meaning of the Internal Revenue Code. A participant's rollover contribution shall be held in a separate rollover account or accounts, as the commission shall determine from time to time. If, at any time, a rollover contribution is determined to be invalid, the commission shall distribute to the participant any such amount determined to be invalid within a reasonable period of time after such a determination is made.

La. Admin. Code tit. 32, § VII-721

Promulgated by the Department of the Treasury, Deferred Compensation Commission, LR 24:1969 (October 1998), amended LR 28:1499 (June 2002), LR 37:1621 (June 2011), LR 40:2281 (November 2014), Amended LR 501012 (7/1/2024).

AUTHORITY NOTE: Promulgated in accordance with IRC §457 and R.S. 42:1301-1308.