N.Y. Comp. Codes R. & Regs. tit. 21 § 5022.3

Current through Register Vol. 46, No. 43, October 23, 2024

Section 5022.3 - Definitions

(a) Eligible rollover distribution. An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except an eligible rollover distribution does not include any distribution which, under the Internal Revenue Code or any regulations thereunder, may not be rolled over, such as: any distribution which is one 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 10 years or more; any distribution to the extent such distribution is required by section 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includible in gross income. Anything in the foregoing to the contrary notwithstanding, in the case of distributions made after December 31, 2001, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in section 408(a) or (b) of the Internal Revenue Code or to a qualified defined contribution plan described in section 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 which is includible in gross income and the portion of such distribution which is not so includible.

(b) Eligible retirement plan. An eligible retirement plan is, as permitted under section 401(a)(31) of the Internal Revenue Code or any regulation thereunder, an individual retirement account described in section 408(a) of the Internal Revenue Code, an individual retirement annuity described in section 408(b) of the Internal Revenue Code, an annuity plan described in section 403(a) of the Internal Revenue Code, or a qualified trust described in section 401(a) of the Internal Revenue Code that accepts a distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to a surviving spouse, an eligible retirement plan is an individual retirement account or an individual retirement annuity. Anything in the foregoing to the contrary notwithstanding, in the case of distributions made after December 31, 2001:

(1) an eligible retirement plan shall include an annuity contract described in section 403(b) of the Internal Revenue Code and an eligible plan under section 457(b) of the Internal Revenue Code which is maintained by a state, political subdivision of a state or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from the system; and

(2) the definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse or former spouse who is the alternate payee under a qualified domestic relations order as defined in section 414(p) of the Internal Revenue Code.

(c) Distributee. A distributee includes a teacher or former teacher. In addition, the teacher's or former teacher's surviving spouse and the teacher's or former teacher's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in section 414(p) of the Internal Revenue Code, are distributees with regard to the interest of the spouse or former spouse. A distributee also includes a person other than a spouse who is a designated beneficiary eligible to receive a benefit because of a member or retiree's death; in such case, the distributee's only rollover option is a direct rollover to an inherited individual retirement account.

(d) Direct rollover. A direct rollover is a payment by the system to the eligible retirement plan specified by the distributee.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 5022.3