97B.82 PURCHASE OF SERVICE CREDIT -- DIRECT ROLLOVERS
-- DIRECT TRANSFERS.
1. Effective July 1, 2002, a member may, to the extent permitted
by the internal revenue service, purchase any service credit
permitted under this chapter by means of a direct rollover or a
direct transfer as provided in this section pursuant to rules adopted
by the system and consistent with applicable requirements of the
federal Internal Revenue Code. Purchases of service credit by means
of a direct rollover or direct transfer under this section shall not
exceed the amounts permitted under section 415(n) of the federal
Internal Revenue Code and section 97B.80C as determined by the
system.
2. a. A member may purchase service credit as authorized by
this section through a direct rollover to the retirement system of an
eligible rollover distribution from an eligible retirement plan as
permitted by the internal revenue service under the federal Internal
Revenue Code. The amount of the direct rollover into the retirement
system cannot exceed the cost of the service purchase by a member
under this chapter. Once a direct rollover is made, the member must
forfeit the applicable service credit from the eligible retirement
plan from which the eligible rollover distribution is received.
b. (1) For purposes of this subsection, "an eligible
rollover distribution from an eligible retirement plan" includes
distributions from any of the following:
(a) Qualified plans described in federal Internal Revenue Code
sections 401(a) and 403(a).
(b) Annuity contracts described in federal Internal Revenue Code
section 403(b).
(c) Eligible plans described under federal Internal Revenue Code
section 457(b) which are maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state.
(d) Individual retirement accounts described in federal Internal
Revenue Code section 408(a) or 408(b).
(2) An eligible rollover distribution from an eligible retirement
plan 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) (i) For rollover service purchases prior to January 1, 2007,
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.
(ii) For rollover service purchases on or after January 1, 2007,
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,
shall be treated as an eligible rollover distribution only when such
portion is received from a qualified plan under section 401(a) or
403(a) of the federal Internal Revenue Code.
(d) Any amounts that are not permitted to be treated as eligible
rollover distributions by the internal revenue service under the
federal Internal Revenue Code.
3. A member may purchase any service credit as authorized by this
section, to the extent permitted by the internal revenue service, by
means of a direct transfer of pretax amounts, and effective January
1, 2007, any after-tax contributions, from an annuity contract
qualified under federal Internal Revenue Code section 403(b), or an
eligible plan described in federal Internal Revenue Code section
457(b), maintained by a state, political subdivision of a state, or
any agency or instrumentality of a state or political subdivision of
a state. A direct transfer is a trustee-to-trustee transfer to the
retirement system of contributions made to annuity contracts
qualified under federal Internal Revenue Code section 403(b) and
eligible governmental plans qualified under federal Internal Revenue
Code section 457(b) for purposes of purchasing service credit in the
retirement system.
97B.82 PURCHASE OF SERVICE CREDIT -- DIRECT ROLLOVERS
-- DIRECT TRANSFERS.
1. Effective July 1, 2002, a member may, to the extent permitted
by the internal revenue service, purchase any service credit
permitted under this chapter by means of a direct rollover or a
direct transfer as provided in this section pursuant to rules adopted
by the system and consistent with applicable requirements of the
federal Internal Revenue Code. Purchases of service credit by means
of a direct rollover or direct transfer under this section shall not
exceed the amounts permitted under section 415(n) of the federal
Internal Revenue Code and section 97B.80C as determined by the
system.
2. a. A member may purchase service credit as authorized by
this section through a direct rollover to the retirement system of an
eligible rollover distribution from an eligible retirement plan as
permitted by the internal revenue service under the federal Internal
Revenue Code. The amount of the direct rollover into the retirement
system cannot exceed the cost of the service purchase by a member
under this chapter. Once a direct rollover is made, the member must
forfeit the applicable service credit from the eligible retirement
plan from which the eligible rollover distribution is received.
b. (1) For purposes of this subsection, "an eligible
rollover distribution from an eligible retirement plan" includes
distributions from any of the following:
(a) Qualified plans described in federal Internal Revenue Code
sections 401(a) and 403(a).
(b) Annuity contracts described in federal Internal Revenue Code
section 403(b).
(c) Eligible plans described under federal Internal Revenue Code
section 457(b) which are maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state.
(d) Individual retirement accounts described in federal Internal
Revenue Code section 408(a) or 408(b).
(2) An eligible rollover distribution from an eligible retirement
plan 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) (i) For rollover service purchases prior to January 1, 2007,
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.
(ii) For rollover service purchases on or after January 1, 2007,
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,
shall be treated as an eligible rollover distribution only when such
portion is received from a qualified plan under section 401(a) or
403(a) of the federal Internal Revenue Code.
(d) Any amounts that are not permitted to be treated as eligible
rollover distributions by the internal revenue service under the
federal Internal Revenue Code.
3. A member may purchase any service credit as authorized by this
section, to the extent permitted by the internal revenue service, by
means of a direct transfer of pretax amounts, and effective January
1, 2007, any after-tax contributions, from an annuity contract
qualified under federal Internal Revenue Code section 403(b), or an
eligible plan described in federal Internal Revenue Code section
457(b), maintained by a state, political subdivision of a state, or
any agency or instrumentality of a state or political subdivision of
a state. A direct transfer is a trustee-to-trustee transfer to the
retirement system of contributions made to annuity contracts
qualified under federal Internal Revenue Code section 403(b) and
eligible governmental plans qualified under federal Internal Revenue
Code section 457(b) for purposes of purchasing service credit in the
retirement system.
97B.82 PURCHASE OF SERVICE CREDIT -- DIRECT ROLLOVERS
-- DIRECT TRANSFERS.
1. Effective July 1, 2002, a member may, to the extent permitted
by the internal revenue service, purchase any service credit
permitted under this chapter by means of a direct rollover or a
direct transfer as provided in this section pursuant to rules adopted
by the system and consistent with applicable requirements of the
federal Internal Revenue Code. Purchases of service credit by means
of a direct rollover or direct transfer under this section shall not
exceed the amounts permitted under section 415(n) of the federal
Internal Revenue Code and section 97B.80C as determined by the
system.
2. a. A member may purchase service credit as authorized by
this section through a direct rollover to the retirement system of an
eligible rollover distribution from an eligible retirement plan as
permitted by the internal revenue service under the federal Internal
Revenue Code. The amount of the direct rollover into the retirement
system cannot exceed the cost of the service purchase by a member
under this chapter. Once a direct rollover is made, the member must
forfeit the applicable service credit from the eligible retirement
plan from which the eligible rollover distribution is received.
b. (1) For purposes of this subsection, "an eligible
rollover distribution from an eligible retirement plan" includes
distributions from any of the following:
(a) Qualified plans described in federal Internal Revenue Code
sections 401(a) and 403(a).
(b) Annuity contracts described in federal Internal Revenue Code
section 403(b).
(c) Eligible plans described under federal Internal Revenue Code
section 457(b) which are maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state.
(d) Individual retirement accounts described in federal Internal
Revenue Code section 408(a) or 408(b).
(2) An eligible rollover distribution from an eligible retirement
plan 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) (i) For rollover service purchases prior to January 1, 2007,
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.
(ii) For rollover service purchases on or after January 1, 2007,
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,
shall be treated as an eligible rollover distribution only when such
portion is received from a qualified plan under section 401(a) or
403(a) of the federal Internal Revenue Code.
(d) Any amounts that are not permitted to be treated as eligible
rollover distributions by the internal revenue service under the
federal Internal Revenue Code.
3. A member may purchase any service credit as authorized by this
section, to the extent permitted by the internal revenue service, by
means of a direct transfer of pretax amounts, and effective January
1, 2007, any after-tax contributions, from an annuity contract
qualified under federal Internal Revenue Code section 403(b), or an
eligible plan described in federal Internal Revenue Code section
457(b), maintained by a state, political subdivision of a state, or
any agency or instrumentality of a state or political subdivision of
a state. A direct transfer is a trustee-to-trustee transfer to the
retirement system of contributions made to annuity contracts
qualified under federal Internal Revenue Code section 403(b) and
eligible governmental plans qualified under federal Internal Revenue
Code section 457(b) for purposes of purchasing service credit in the
retirement system.
