Arizona Administrative Code › Title 2 - ADMINISTRATION › Chapter 8 - STATE RETIREMENT SYSTEM BOARD › Article 5 - PURCHASING SERVICE CREDIT › Section R2-8-514 - Purchasing Service Credit by Direct Rollover or Trustee-to-Trustee Transfer

Current through Register Vol. 30, No. 28, July 12, 2024
A. An
				Eligible Member may purchase Service Credit by Direct Rollover or
				Trustee-to-Trustee Transfer pursuant to this Article.
B. By the due date specified by the method of
				payment the Eligible Member elected, the Eligible Member shall ensure that the
				ASRS receives the payment for the service purchase and a completed Direct
				Rollover/ Transfer Certification to Purchase Service Credit form.
C. An Eligible Member who chooses to purchase
				Service Credit shall provide the following to the ASRS:
1. The name of the financial institution or
				plan;
2. Whether the Eligible
				Member is choosing to rollover/transfer the entire balance of their account and
				if not, the amount of the rollover/transfer;
3. Acknowledgement of the following
				information:
a. After-tax funds are only
				acceptable from 401(a) and 403(b) plans and must be listed separately from the
				portion that is pretax on the payment as after-tax amounts. This information
				must be provided to the ASRS with the payment.
b. The only fund types that the ASRS accepts
				are:
i. 401(a);
ii. 401(k) pre-tax only;
iii. 403(b);
iv. Governmental 457 pre-tax only;
v. 403(a) pre-tax only;
vi. 408 Traditional IRA pre-tax
				only;
vii. 408(k) SEP IRA pre-tax
				only;
viii. 408(p) Simple IRA
				pre-tax only and only if the Eligible Member participated for at least 2 years
				in this plan;
c. The ASRS
				shall not accept the following fund types:
i.
				Roth funds;
ii. Funds already
				distributed to the Eligible Member from a retirement plan listed in subsection
				(3)(b);
iii. Inherited
				IRA;
iv. Coverdale Education
				Savings Account funds;
v. Hardship
				distributions;
vi. Funds not
				includable in gross income;
vii.
				Funds required under § 401(a)(9) of the IRC because the Eligible Member have
				attained age 701/2;
viii. One of a
				series of substantially equal periodic payments made at least annually for the
				Eligible Member's life;
ix. One of
				a series of substantially equal periodic payments made for 10 years or
				more;
x. After-tax contributions
				from any plan other than a 401(a) or 403(b) qualified plan;
d. The funds must be sent as a
				Direct Rollover from a plan listed in subsection (3)(b) and issued to the ASRS
				for the benefit of the Eligible Member. If the payment is issued to anyone
				other than the ASRS, including the Eligible Member, then within 60 days of the
				plan issuing the payment, the Eligible Member must place the payment into a
				plan specified in subsection (3)(b) to be reissued directly to the
				ASRS.
e. It is the Eligible
				Member's responsibility to contact the administrator of the plan from which the
				Direct Rollover will be made and have it initiated. The Eligible Member must
				also ensure all rollovers are completed by the due date. If the ASRS does not
				receive payment by the due date, the invoice will expire and the payment will
				be returned to the Eligible Member.
f. If the ASRS accepts a rollover and later
				determines that it was not eligible, the ASRS will distribute the invalid
				payment directly to the Eligible Member. Any taxes, penalties, and interest
				that the IRS, any taxing authority, or financial institution may assess against
				the Eligible Member due to an invalid payment are solely the Eligible Member's
				responsibility.
g. The plan from
				which the Eligible Member is rolling over funds must be solely in the Eligible
				Member's name. The Eligible Member may be a spousal beneficiary of a deceased
				person or an alternate payee on the plan from which the Eligible Member is
				rolling over funds.