Code of Massachusetts Regulations › 840 CMR - PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION › Title 840 CMR 3.00 - Internal Revenue Code Compliance Provisions › Section 3.07 - Internal Revenue Code Section 401(a)(31)

Current through Register 1525, July 5, 2024
840 CMR 3.07 applies to
				distributions made on or after January 1, 1993 by a retirement system subject
				to M.G.L. c. 32, provided that any regulations adopted by a retirement board
				that applied the rules of Code Section 401(a)(31) to distributions from its
				system shall be deemed to apply in
lieu
of
				840
				CMR 3.07. Notwithstanding any contrary
				provision or retirement law that would otherwise limit a distributee's election
				under
				840
				CMR 3.07, a distributee may elect, at the
				time and in the manner prescribed by the retirement board, to have any portion
				of an eligible rollover distribution paid directly to an eligible retirement
				plan specified by the distributee in a direct rollover.
(1)
Eligible Rollover
			 Distribution
: An eligible rollover distribution is any
			 distribution of all or any portion of the balance to the credit of the
			 distributee, except that an eligible rollover distribution does not include:
			 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; any distribution to the extent such
			 distribution is required under Internal Revenue Code Section 401(a)(9); the
			 portion of any distribution that is not includible in gross income; and any
			 other distribution that is reasonably expected to total less than $200 during
			 the year. Effective 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:
(a) to an individual retirement account or
			 annuity described in Internal Revenue Code Section 408(a) or (b), or to a
			 qualified defined contribution plan described in Internal Revenue Code Section
			 401(a) that agrees to separately account for amounts so transferred (and
			 earnings thereon), including separately accounting for the portion of the
			 distribution that is includible in gross income and the portion of the
			 distribution that is not so includible;
(b) on or after January 1, 2007, to a
			 qualified defined benefit plan described in Internal Revenue Code Section
			 401(a) or to an annuity contract described in Internal Revenue Code Section
			 403(b), that agrees to separately account for amounts so transferred (and
			 earnings thereon), including separately accounting for the portion of the
			 distribution that is includible in gross income and the portion of the
			 distribution that is not so includible; or
(c) on or after January 1, 2008, to a Roth
			 IRA described in Internal Revenue Code Section 408A.