97B.53B ROLLOVERS OF MEMBERS' ACCOUNTS.
1. As used in this section, unless the context otherwise
requires, and to the extent permitted by the internal revenue
service:
a. "Direct rollover" means a payment by the system to the
eligible retirement plan specified by an eligible person.
b. "Eligible person" means any of the following:
(1) The member.
(2) The member's surviving spouse.
(3) The member's spouse or former spouse as an alternate payee
under a qualified domestic relations order.
(4) Effective January 1, 2007, the member's nonspouse
beneficiaries who are designated beneficiaries as defined by section
401(a)(9)(E) of the federal Internal Revenue Code, as authorized
under section 829 of the federal Pension Protection Act of 2006.
c. "Eligible retirement plan" means, for an eligible person,
any of the following retirement plans that can accept an eligible
rollover distribution from that eligible person:
(1) An individual retirement account in accordance with section
408(a) of the federal Internal Revenue Code.
(2) An individual retirement annuity in accordance with section
408(b) of the federal Internal Revenue Code.
(3) 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.
(4) Effective January 1, 2002, an annuity contract described in
section 403(b) of the federal Internal Revenue Code, and an eligible
plan under section 457(b) of the federal 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 that chooses to separately account for amounts transferred into
such eligible retirement plan from the system.
(5) Effective January 1, 2008, a Roth individual retirement
account or a Roth individual retirement annuity established under
section 408A of the Internal Revenue Code.
d. (1) "Eligible rollover distribution" includes any of
the following:
(a) All or any portion of a member's account and supplemental
account.
(b) Effective January 1, 2002, after-tax employee contributions,
if the plan to which such amounts are to be transferred is an
individual retirement account described in federal Internal Revenue
Code section 408(a) or 408(b), or is a qualified defined contribution
plan described in federal Internal Revenue Code section 401(a) or
403(a), and such plan agrees to separately account for the after-tax
amount so transferred.
(c) Effective January 1, 2007, after-tax employee contributions
to a qualified defined benefit plan described in federal Internal
Revenue Code section 401(a) or 403(a), or a tax-sheltered annuity
plan described in federal Internal Revenue Code section 403(b), and
such plan agrees to separately account for the after-tax amount so
transferred.
(2) An eligible rollover distribution does not include any of the
following:
(a) 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.
(b) A distribution to the extent that the distribution is
required pursuant to section 401(a)(9) of the federal Internal
Revenue Code.
(c) Prior to January 1, 2002, 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.
2. An eligible person may elect, at the time and in the manner
prescribed in rules adopted by the system and in rules of the
receiving retirement plan, to have the system pay all or a portion of
an eligible rollover distribution directly to an eligible retirement
plan in a direct rollover. However, effective January 1, 2007, if
the eligible person is a nonspouse beneficiary as described in
subsection 1, paragraph "b", subparagraph (4), the nonspouse
beneficiary may only have a direct rollover of the distribution to an
individual retirement account or annuity as described in subsection
1, paragraph "c", subparagraphs (1), (2), and (5), established
for the purpose of receiving the distribution on behalf of the
nonspouse beneficiary, and such individual retirement account or
annuity will be treated as an inherited individual retirement account
or annuity pursuant to section 829 of the federal Pension Protection
Act of 2006.
2008 amendments to section by 2008 Acts, ch 1171, §39, take effect
May 15, 2008, and, except as otherwise stated, apply retroactively to
January 1, 2007; 2008 Acts, ch 1171, §49
97B.53B ROLLOVERS OF MEMBERS' ACCOUNTS.
1. As used in this section, unless the context otherwise
requires, and to the extent permitted by the internal revenue
service:
a. "Direct rollover" means a payment by the system to the
eligible retirement plan specified by an eligible person.
b. "Eligible person" means any of the following:
(1) The member.
(2) The member's surviving spouse.
(3) The member's spouse or former spouse as an alternate payee
under a qualified domestic relations order.
(4) Effective January 1, 2007, the member's nonspouse
beneficiaries who are designated beneficiaries as defined by section
401(a)(9)(E) of the federal Internal Revenue Code, as authorized
under section 829 of the federal Pension Protection Act of 2006.
c. "Eligible retirement plan" means, for an eligible person,
any of the following retirement plans that can accept an eligible
rollover distribution from that eligible person:
(1) An individual retirement account in accordance with section
408(a) of the federal Internal Revenue Code.
(2) An individual retirement annuity in accordance with section
408(b) of the federal Internal Revenue Code.
(3) 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.
(4) Effective January 1, 2002, an annuity contract described in
section 403(b) of the federal Internal Revenue Code, and an eligible
plan under section 457(b) of the federal 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 that chooses to separately account for amounts transferred into
such eligible retirement plan from the system.
(5) Effective January 1, 2008, a Roth individual retirement
account or a Roth individual retirement annuity established under
section 408A of the Internal Revenue Code.
d. (1) "Eligible rollover distribution" includes any of
the following:
(a) All or any portion of a member's account and supplemental
account.
(b) Effective January 1, 2002, after-tax employee contributions,
if the plan to which such amounts are to be transferred is an
individual retirement account described in federal Internal Revenue
Code section 408(a) or 408(b), or is a qualified defined contribution
plan described in federal Internal Revenue Code section 401(a) or
403(a), and such plan agrees to separately account for the after-tax
amount so transferred.
(c) Effective January 1, 2007, after-tax employee contributions
to a qualified defined benefit plan described in federal Internal
Revenue Code section 401(a) or 403(a), or a tax-sheltered annuity
plan described in federal Internal Revenue Code section 403(b), and
such plan agrees to separately account for the after-tax amount so
transferred.
(2) An eligible rollover distribution does not include any of the
following:
(a) 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.
(b) A distribution to the extent that the distribution is
required pursuant to section 401(a)(9) of the federal Internal
Revenue Code.
(c) Prior to January 1, 2002, 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.
2. An eligible person may elect, at the time and in the manner
prescribed in rules adopted by the system and in rules of the
receiving retirement plan, to have the system pay all or a portion of
an eligible rollover distribution directly to an eligible retirement
plan in a direct rollover. However, effective January 1, 2007, if
the eligible person is a nonspouse beneficiary as described in
subsection 1, paragraph "b", subparagraph (4), the nonspouse
beneficiary may only have a direct rollover of the distribution to an
individual retirement account or annuity as described in subsection
1, paragraph "c", subparagraphs (1), (2), and (5), established
for the purpose of receiving the distribution on behalf of the
nonspouse beneficiary, and such individual retirement account or
annuity will be treated as an inherited individual retirement account
or annuity pursuant to section 829 of the federal Pension Protection
Act of 2006.
2008 amendments to section by 2008 Acts, ch 1171, §39, take effect
May 15, 2008, and, except as otherwise stated, apply retroactively to
January 1, 2007; 2008 Acts, ch 1171, §49
97B.53B ROLLOVERS OF MEMBERS' ACCOUNTS.
1. As used in this section, unless the context otherwise
requires, and to the extent permitted by the internal revenue
service:
a. "Direct rollover" means a payment by the system to the
eligible retirement plan specified by an eligible person.
b. "Eligible person" means any of the following:
(1) The member.
(2) The member's surviving spouse.
(3) The member's spouse or former spouse as an alternate payee
under a qualified domestic relations order.
(4) Effective January 1, 2007, the member's nonspouse
beneficiaries who are designated beneficiaries as defined by section
401(a)(9)(E) of the federal Internal Revenue Code, as authorized
under section 829 of the federal Pension Protection Act of 2006.
c. "Eligible retirement plan" means, for an eligible person,
any of the following retirement plans that can accept an eligible
rollover distribution from that eligible person:
(1) An individual retirement account in accordance with section
408(a) of the federal Internal Revenue Code.
(2) An individual retirement annuity in accordance with section
408(b) of the federal Internal Revenue Code.
(3) 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.
(4) Effective January 1, 2002, an annuity contract described in
section 403(b) of the federal Internal Revenue Code, and an eligible
plan under section 457(b) of the federal 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 that chooses to separately account for amounts transferred into
such eligible retirement plan from the system.
(5) Effective January 1, 2008, a Roth individual retirement
account or a Roth individual retirement annuity established under
section 408A of the Internal Revenue Code.
d. (1) "Eligible rollover distribution" includes any of
the following:
(a) All or any portion of a member's account and supplemental
account.
(b) Effective January 1, 2002, after-tax employee contributions,
if the plan to which such amounts are to be transferred is an
individual retirement account described in federal Internal Revenue
Code section 408(a) or 408(b), or is a qualified defined contribution
plan described in federal Internal Revenue Code section 401(a) or
403(a), and such plan agrees to separately account for the after-tax
amount so transferred.
(c) Effective January 1, 2007, after-tax employee contributions
to a qualified defined benefit plan described in federal Internal
Revenue Code section 401(a) or 403(a), or a tax-sheltered annuity
plan described in federal Internal Revenue Code section 403(b), and
such plan agrees to separately account for the after-tax amount so
transferred.
(2) An eligible rollover distribution does not include any of the
following:
(a) 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.
(b) A distribution to the extent that the distribution is
required pursuant to section 401(a)(9) of the federal Internal
Revenue Code.
(c) Prior to January 1, 2002, 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.
2. An eligible person may elect, at the time and in the manner
prescribed in rules adopted by the system and in rules of the
receiving retirement plan, to have the system pay all or a portion of
an eligible rollover distribution directly to an eligible retirement
plan in a direct rollover. However, effective January 1, 2007, if
the eligible person is a nonspouse beneficiary as described in
subsection 1, paragraph "b", subparagraph (4), the nonspouse
beneficiary may only have a direct rollover of the distribution to an
individual retirement account or annuity as described in subsection
1, paragraph "c", subparagraphs (1), (2), and (5), established
for the purpose of receiving the distribution on behalf of the
nonspouse beneficiary, and such individual retirement account or
annuity will be treated as an inherited individual retirement account
or annuity pursuant to section 829 of the federal Pension Protection
Act of 2006.
2008 amendments to section by 2008 Acts, ch 1171, §39, take effect
May 15, 2008, and, except as otherwise stated, apply retroactively to
January 1, 2007; 2008 Acts, ch 1171, §49
