Section 45-8A-22.86 Eligible rollover distribution; direct rollover.
Section 45-8A-22.86
Eligible rollover distribution; direct rollover.
(a) This section applies to distributions made on or after December 1, 1994. Notwithstanding any provision of the plan to the contrary, that would otherwise limit a distributes election under this section, a distribute 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 distribute in a direct roll over.
(b) Definitions: 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 that an eligible rollover distribution does not include: Any 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 under Section 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includible in gross income.
(c) Eligible retirement plan. An eligible retirement plan is an individual retirement account described in Section 408(b) of the Internal Revenue Code, an individual retirement annuity plan described in Section 408(a) of the Internal Revenue Code or a qualified trust described in Section 401(a) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity.
(d) Distributee. A distributee includes an employee or former employee. 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 (QDRO), as defined in Section 414(p) of the Internal Revenue Code, are distributees with regard to the interest of the spouse or former spouse.
(e) Direct rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.
(Act 2002-298, p. 815, §28; Act 2002-304, p. 841, §28.)