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97a-6b
97A.6B ROLLOVERS OF MEMBERS' ACCOUNTS.
1. As used in this section, unless the context otherwise
requires:
a. "Direct rollover" means a payment by the system to the
eligible retirement plan specified by the member or the member's
surviving spouse.
b. (1) "Eligible retirement plan" means either of the
following that accepts an eligible rollover distribution from a
member or a member's surviving spouse:
(a) An individual retirement account in accordance with section
408(a) of the federal Internal Revenue Code.
(b) An individual retirement annuity in accordance with section
408(b) of the federal Internal Revenue Code.
(2) In addition, an "eligible retirement plan" includes an
annuity plan in accordance with section 403(a) of the federal
Internal Revenue Code, or a qualified trust in accordance with
section 401(a) of the federal Internal Revenue Code, that accepts an
eligible rollover distribution from a member.
c. "Eligible rollover distribution" means all or any portion
of a member's account, except that an eligible rollover distribution
does not include any of the following:
(1) A distribution that is one of a series of substantially equal
periodic payments, which occur annually or more frequently, 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 made for a specified period of ten years
or more.
(2) A distribution to the extent that the distribution is
required pursuant to section 401(a)(9) of the federal Internal
Revenue Code.
(3) The portion of any distribution that is not includible in the
gross income of the distributee, determined without regard to the
exclusion for net unrealized appreciation with respect to employer
securities.
(4) A distribution of less than two hundred dollars of taxable
income.
2. Effective January 1, 1993, a member or a member's surviving
spouse may elect, at the time and in the manner prescribed in rules
adopted by the board of trustees, to have the system pay all or a
portion of an eligible rollover distribution directly to an eligible
retirement plan, specified by the member or the member's surviving
spouse, in a direct rollover. If a member or a member's surviving
spouse elects a partial direct rollover, the amount of funds elected
for the partial direct rollover must equal or exceed five hundred
dollars. Section History: Recent Form
94 Acts, ch 1183, §9; 2008 Acts, ch 1032, §201
