New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 7 - ALTERNATE BENEFIT PROGRAM › Subchapter 12 - NEW JERSEY ADDITIONAL CONTRIBUTIONS TAX-SHELTERED PROGRAM (ACTS) › Section 17:7-12.13 - Direct rollovers

Current through Register Vol. 56, No. 14, July 15, 2024
(a)
				Notwithstanding any provision of the ACTS to the contrary that would otherwise
				limit a distributee's election, a distributee may elect, at the time and in the
				manner prescribed by the Plan Administrator, to have any portion of an eligible
				rollover distribution that is equal to at least $ 500.00 paid directly to an
				eligible retirement plan specified by the distributee in a direct rollover. If
				an eligible rollover distribution is less than $ 500.00, a distributee may not
				make the election set forth in this section to roll over only a portion of the
				eligible rollover distribution.
(b)
				Definitions. For purposes of this section, the following definitions apply.
"Direct rollover" means a payment by the ACTS to the eligible
				  retirement plan specified by the distributee.
"Distributee" includes an employee or former employee. In
				  addition, the employee's or former employee's surviving spouse and the
				  employee's or former employees' spouse or former spouse who is the alternate
				  payee under a qualified domestic relations order, as defined in IRC §
				  414(p), are distributees with regard to the interest of the spouse or former
				  spouse. A distributee also includes the participant's nonspouse designated
				  beneficiary. In the case of a nonspouse beneficiary, the direct rollover may be
				  made only to an individual retirement account or annuity described in IRC
				  § 408(a) or (b) (IRA) that is established on behalf of the beneficiary and
				  that will be treated as an inherited IRA pursuant to the provisions of IRC
				  § 402(c)(11). The determination of any required minimum distribution under
				  IRC § 401(a)(9) that is ineligible for rollover shall be made in
				  accordance with IRS Notice 2007-7, Q&A-17 and 18, 2007 I.R.B. 395.
"Eligible retirement plan" means a qualified plan described
				  in IRC § 401 (a), an annuity plan described in IRC § 403(a), an
				  annuity contract described in IRC § 403(b), an individual retirement
				  account or annuity described in IRC § 408(a) or (b), a Roth individual
				  retirement plan under IRC § 408A, or an eligible plan under IRC §
				  457(b), which is maintained by a state and which agrees to separately account
				  for amounts transferred into such plan from the ACTS, that accepts the
				  distributee's eligible rollover distribution. The definition of eligible
				  retirement plan shall also apply in the case of a distribution to a surviving
				  spouse or to a spouse or former spouse who is the alternate payee under a
				  qualified domestic relations order as defined in IRC § 414(p).
"Eligible rollover distribution" means any distribution of
				  all or any portion of the distributee's account balance, except that an
				  eligible rollover distribution does not include:
1. Any distribution that is one of a series
				of substantially equal periodic payments (not less frequently than annually)
				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 for a period of 10 years or more;
2. Any distribution to the extent such
				distribution is required under IRC § 401(a)(9) (other than amounts that
				would have been required but for a statutory waiver of the IRC § 401
				(a)(9) requirements);
3. Any
				hardship distribution;
4. The
				portion of any other distribution(s) that is not includible in gross
				income;
5. Any distribution(s) that
				is reasonably expected to total less than $ 200.00 during a year;
6. Any corrective distribution of excess
				amounts under IRC § 402(g) and/or 415(c) and income allocable thereto;
				and
7. Any loans that are treated
				as deemed distributions pursuant to IRC § 72(p).
A portion of a distribution shall 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 to an individual retirement account or annuity
				  described in IRC § 408(a) or (b), or by direct rollover to a qualified
				  plan described in IRC § 401(a) or a tax-sheltered annuity described in IRC
				  § 403(b) that agrees to separately account for amounts so transferred,
				  including separately accounting for the portion of such distribution that is
				  includible in gross income and the portion of such distribution that is not
				  includible.