Missouri Code of State Regulations › Title 16 - RETIREMENT SYSTEMS › Division 50 - The County Employees' Retirement Fund › Chapter 2 - Membership and Benefits › Section 16 CSR 50-2.130 - Direct Rollover Option

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule describes the direct rollover
				  option authorized by section
				  50.1260,
				  RSMo.
(1) A distributee may
				elect to have an eligible rollover distribution paid directly to a single
				eligible retirement plan specified by the distributee. However, this election
				may not be made if the total eligible rollover distributions paid to the
				distributee will be less than two hundred dollars ($200).
(2) A distributee may elect to divide an
				eligible rollover distribution so that part is paid directly to an eligible
				retirement plan and part is paid to the distributee. However, the part paid
				directly to the eligible retirement plan must total at least five hundred
				dollars ($500).
(3) A distributee
				will be provided with an initial notice in compliance with the rules of
Internal Revenue Code
(Code) section 402(f), advising the
				distributee that there will be withheld an amount equal to twenty percent (20%)
				(or such other amount as may from time to time be prescribed by the Code or the
				Secretary of Treasury or his or her designate) on any eligible rollover
				distribution that is not transferred directly to an eligible retirement plan.
				In general, payment to a distributee shall begin no sooner than thirty (30)
				days after the initial notice is given. However, payment may be made sooner if
				the notice clearly informs the distributee of the right to a period of at least
				thirty (30) days to consider the decision of whether or not to make a direct
				rollover, and the distributee, after receiving the notice, makes an affirmative
				election to either receive an immediate distribution or directly roll over the
				eligible rollover distribution to an eligible retirement plan. If, however, the
				distributee fails to make any such affirmative election within thirty (30) days
				after the initial notice is given, the distributee will be provided with a
				second notice, affording the distributee with an additional opportunity to make
				an affirmative election. If the distributee fails to make an affirmative
				election within the thirty (30)-day period after the second notice is given to
				either receive an immediate distribution or directly roll over the eligible
				rollover distribution to an eligible retirement plan, the distributee will be
				treated as having made an affirmative election to receive an immediate
				distribution, and, accordingly, the eligible rollover distribution (less the
				twenty percent (20%) required to be withheld) will be paid to the distributee
				immediately after such thirty (30)-day period expires.
(4) For purposes of this regulation, the
				following terms have the meanings set forth below:
(A) An "eligible rollover distribution" is
				any distribution or withdrawal payable under the terms of this plan to a
				Participantst or a Participantst's beneficiary, which is described in Code
				section 402(c)(4). In general, this term includes any single-sum distribution,
				and any distribution which is one in a series of substantially equal periodic
				payments made over a period of less than ten (10) years, and is less than the
				distributee's life expectancy. However, an eligible rollover distribution does
				not include the portion of any distribution that constitutes a minimum required
				distribution under Code section 401(a)(9). A portion of a distribution shall
				not fail to be an eligible rollover distribution merely because the portion
				consists of aftertax employee contributions which are not includible in gross
				income. However, effective January 1, 2007, such portion may be paid only to an
				individual retirement account or annuity described in section 408(a) or (b) of
				the Code, or to a qualified trust, or to an annuity contract described in
				section 403(b) of the Code, if such trust or contract separately accounts for
				amounts so transferred (and interest thereon), including separately accounting
				for the portion of the distribution which is includible in gross income and the
				portion of such distribution which is not so includible.
(B) "Eligible retirement plan" means:
1. An individual retirement account described
				in Code section 408(a);
2. An
				individual retirement annuity described in Code section 408(b);
3. An annuity plan described in Code section
				403(a);
4. An annuity contract
				described in Code section 403(b);
5. An eligible plan under Code section 457(b)
				which is maintained by an eligible employer described in Code section
				457(e)(1)(A);
6. A qualified trust
				described in Code section 401(a), but only if the terms of the plan permit the
				acceptance of rollover distributions; and
7. Effective January 1, 2008, a Roth IRA
				described under Code section 408A, to the extent permitted by applicable
				law.
(C) "Distributee"
				means a Participantst or the spouse of a deceased Participantst. Effective
				January 1, 2007, a Participantst's designated non-spouse beneficiary may be a
				distributee but only with respect to an eligible retirement plan described in
				paragraphs (4)(B)1. and 2. above.