La. Admin. Code tit. 58 § XXI-105

Current through Register Vol. 50, No. 11, November 20, 2024

Section XXI-105 - Accumulated Contributions, Rollovers

A. Definitions. As provided in R.S. 11:1635(E), the following definitions are provided or revised.

2009 RMDs of a Participant or Beneficiary3/4amounts that the participant or beneficiary would have been required to receive as a required minimum distribution under IRC §401(a)(9) for the 2009 distribution calendar year.

Eligible Retirement Plan3/4shall include, in addition to the plans and accounts described in R.S. 11:1635(D)(3), the following.

a. Effective for distributions on or after January 1, 2007, eligible retirement plan shall include the individual retirement account or annuity in the name of the deceased participant for the benefit of a nonspouse beneficiary, who receives an eligible rollover distribution from the plan on account of the death of a participant, provided that the individual retirement account or annuity is treated as an inherited IRA and that the minimum distribution rules applicable in the event the IRA owner dies before the entire interest is distributed shall apply to the transferee IRA and the transferee IRA does not provide the beneficiary with the special rules for surviving spouse beneficiaries.

b. If any portion of an eligible rollover distribution is attributable to payments or distributions from a designated Roth account, an eligible retirement plan with respect to such portion shall include only another designated Roth account of the individual from whose account the payments of distributions were made, or a Roth IRA of such individual. Effective January 1, 2007, a Roth IRA is an eligible retirement plan with respect to distributions from this plan that do not consist of designated Roth accounts, so long as the restrictions that apply to a transfer from a traditional IRA (non-Roth) to a Roth IRA are satisfied.

Eligible Rollover Distribution3/4shall include, in addition to the events set forth in R.S. 11:1635(D)(4), the following.

a. Effective January 1, 2003, 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 §408(a) or (b) of the Internal Revenue Code, or a Roth individual retirement account or annuity described in §408A of the Internal Revenue Code (a "Roth IRA") or to a qualified defined contribution plan described in §§401(a) or 403(a) of the Internal Revenue Code 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 so includible.

b. Effective January 1, 2007, eligible rollover distributions shall include a distribution to a nonspouse beneficiary on account of the participants death, so long as any rollover distribution is transferred to an individual retirement account or annuity that is treated as an inherited account of the deceased participant, or Roth IRA established on behalf of the nonspouse designated beneficiary for the purpose of receiving the distribution. Effective January 1, 2007, early rollover distribution shall include after-tax contributions held in a plan qualified under §401(a) of the Internal Revenue Code. Effective January 1, 2007, distributions from the plan that do not consist of designated Roth accounts shall be eligible rollover distributions with respect to a Roth IRA and may be rolled over to a Roth IRA, subject to the restrictions that apply to a transfer from a traditional (non-Roth) IRA to a Roth IRA.

c. During 2009, 2009 RMDs shall be treated as eligible rollover distributions for purposes of making available the direct rollover of eligible rollover distributions that include such amount, but not for purposes of withholding federal income taxes on the amount when it is distributed.

B. Rollover of Returned Contributions. As provided in R.S. 11:1635(E):

1. distributee, eligible retirement plan and eligible rollover distribution shall be defined as provided in Subsection A of this Section;

2. an eligible rollover distribution shall be transferred in a direct rollover to an eligible retirement plan if so directed by the distributee. The board shall provide distributees with the opportunity to direct such direct rollover by written notice at least 30 and not longer than 180 days prior to the distribution;

3. this rollover right shall apply to any eligible rollover distribution, including distributions of accumulated contributions, DROP accounts and back-DROP accounts.

C. Eligible Retirement Plan

1. Effective for distributions on or after January 1, 2007:

a. eligible retirement plan shall include the individual retirement account or annuity in the name of the deceased participant for the benefit of a nonspouse beneficiary, who receives an eligible rollover distribution from the plan on account of the death of a participant, provided that the individual retirement account or annuity is treated as an inherited IRA and that the minimum distribution rules applicable in the event the IRA owner dies before the entire interest is distributed shall apply to the transferee IRA and the transferee IRA does not provide the beneficiaries with the special rules for surviving spouse beneficiaries;

b. a Roth IRA is an eligible retirement plan with respect to distributions from the fund that do not consist of designated Roth accounts, so long as the restrictions that apply to a transfer from a traditional IRA (non-Roth) to a Roth IRA are satisfied.

D. Eligible Rollover Distribution

1. If any portion of an eligible rollover distribution is attributable to payments or distributions from a designated Roth account, an eligible retirement plan with respect to such portion shall include only another designated Roth account of the individual from whose account the payments or distributions were made, or a Roth IRA of such individual.

2. Effective January 1, 2003, 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 to a qualified defined contribution plan described in IRC §§401(a) or 403(a) 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 so includible.

3. Effective January 1, 2007, eligible rollover distributions shall include:

a. a distribution to a nonspouse beneficiary on account of the participants death, so long as any rollover distribution is transferred to an individual retirement account or annuity that is treated as an inherited account of the deceased participant;

b. after-tax contributions held in a plan qualified under IRC § 401(a).

4. Effective January 1, 2007, distributions from the plan that do not consist of designated Roth accounts shall be eligible rollover distributions with respect to a Roth IRA and may be rolled over to a Roth IRA, subject to the restrictions that apply to a transfer from a traditional (non-Roth) IRA to a Roth IRA.

5. During 2009, 2009 RMDs shall be treated as eligible rollover distributions for purposes of making available the direct rollover of eligible rollover distributions that include such amount, but not for purposes of withholding federal income taxes on the amount when it is distributed.

E. Payment for Age Discrimination Service Credit

1. As provided in R.S. 11:1617(B), payment may be made directly by the member or may be made on the members behalf in a single sum payment by:

a. an individual retirement account; or

b. an individual retirement annuity; or

c. a plan qualified under IRC §§401(a), 403(a), 403(b), or 457(g).

2. Source of Contribution. Amounts contributed under Paragraph 1 of this Subsection shall not consist of amounts for wh ich additional recordkeeping is required, such as after tax or Roth accounts. The trustees shall have discretion whether to accept contributions in any particular form.

La. Admin. Code tit. 58, § XXI-105

Promulgated by the Board of Trustees of the District Attorneys Retirement System, LR 41:2313 (November 2015), Amended LR 43877 (5/1/2017).

AUTHORITY NOTE: Promulgated in accordance with the provisions of R.S. 11:1588(A), R.S. 11:1617(B), and the Administrative Procedure Act, R.S. 49:950 et seq.