Code of Massachusetts Regulations › 941 CMR - STATE BOARD OF RETIREMENT › Title 941 CMR 3.00 - Rollover Distributions and Payment for Purchase of Creditable Service › Section 3.03 - Rollovers from the Plan

Current through Register 1525, July 5, 2024
(1) The following
			 definitions apply to
			 941
			 CMR 3.03:
Direct Rollover
. A payment by the
				Board to the Eligible Retirement Plan specified by the Distributee in a manner
				satisfying 26 I.R.C. § 401(a)(31).
Distributee
. Any employee or former
				employee, as well as the employee's or former employee's surviving spouse (as
				defined by federal law), or to a spouse or former spouse who is an alternate
				payee (as defined by 26 I.R.C. § 414(p)), who is entitled to an Eligible
				Rollover Distribution from the Board. Effective January 1, 2007, a Distributee
				also includes a non-spousal beneficiary who is a designated beneficiary under
				26 I.R.C. § 401(a)(9)(E) and is entitled to an Eligible Rollover
				Distribution from the Board, but only with respect to an Eligible Retirement
				Plan that is an individual retirement account under 26 I.R.C. § 408(a) or
				an individual retirement annuity under 26 I.R.C. § 408(b) (other than an
				endowment contract), or a Roth IRA under 26 I.R.C. § 408A, established for
				the purpose of receiving the distribution and the account or annuity will be
				treated as an inherited account or annuity.
Eligible Retirement Plan
. Any of the
				following programs that accepts the Distributee's Eligible Rollover
				Distribution:
(a) an individual
			 retirement account under 26 I.R.C. § 408(a);
(b) an individual retirement annuity under 26
			 I.R.C. § 408(b), other than an endowment contract;
(c) a qualified plan under 26 I.R.C. §
			 401(a) or § 403(a);
(d) an
			 eligible deferred compensation plan under 26 I.R.C. § 457(b) which is
			 maintained by a state, a political subdivision of a state, or any agency or
			 instrumentality of a state or a political subdivision of a state, so long as
			 the plan agrees to separately account for amounts rolled into the
			 plan;
(e) an annuity contract under
			 26 I.R.C. § 403(b);
(f) for
			 distributions on or after January 1, 2008, a Roth IRA; and
(g) for distributions after December 18,
			 2015, a SIMPLE IRA under 26 I.R.C. § 408(p) that has been established for
			 at least two years.
Eligible Rollover Distribution
. Any
				distribution under M.G.L. c. 32 of all or any portion of the balance to the
				credit of the Distributee, except that an Eligible Rollover Distribution does
				not include:
(a) any distribution that
			 is one of a series of substantially equal periodic payments (not less
			 frequently than annually) made for the life (or the 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 ten
			 years or more;
(b) any distribution
			 to the extent such distribution is required under 26 I.R.C. § 401(a)(9);
			 or
(c) the portion of any
			 distribution that is not includible in gross income. However, effective for
			 distributions on or after January 1, 2002, a portion of a distribution will not
			 fail to be an Eligible Rollover Distribution merely because the portion
			 consists of after-tax employee contributions that are not includible in gross
			 income. However, such portion may be transferred only
1. to a traditional individual retirement
			 account or individual retirement annuity, or to a qualified trust which is a
			 defined contribution plan that will separately account for the taxable and
			 nontaxable portions of the distribution; or
2. effective on or after January 1, 2007, to
			 a qualified trust which is a defined benefit plan or a 403(b) tax-sheltered
			 annuity that will separately account for the taxable and nontaxable portions of
			 the distribution;
3. effective on
			 or after January 1, 2008, to a Roth IRA under 26 I.R.C. § 408A;
			 or
4. effective after December 18,
			 2015, a SIMPLE IRA under 26 I.R.C. § 408(p) that has been established for
			 at least two years.