New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 1 - GENERAL ADMINISTRATION › Subchapter 17 - COMPLIANCE WITH INTERNAL REVENUE CODE › Section 17:1-17.4 - Compliance with 26 U.S.C. 401(a)(31) for eligible rollover distributions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Pursuant to
				43:3C-20, and for purposes of
				compliance with
				26 U.S.C.
				§
										401(a)(31), this
				section applies notwithstanding any contrary provision or retirement law that
				would otherwise limit a distributee's election to make a rollover. A
				distributee may elect, at the time and in the manner prescribed by the
				retirement system, to have any portion of an eligible rollover distribution
				paid directly to an eligible retirement plan specified by the distributee in a
				direct rollover.
(b) As used in (a)
				above, the following terms shall have the following meanings.
1. "Eligible rollover distribution" means 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:
i. 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 10 years or more;
ii. Any distribution to the extent such
				distribution is required under
				26 U.S.C.
				§
												401(a)(9), the
				portion that is not includible in gross income;
iii. Any other distribution that the Federal
				Internal Revenue Service does not consider eligible for rollover treatment,
				such as certain corrective distributions necessary to comply with the
				provisions of
				26
				U.S.C. §
												415 or any distribution that is
				reasonably expected to total less than $ 200.00 during the year. Effective
				January 1, 2002, 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:
(1) To an individual
				retirement account or annuity described in
				26 U.S.C. §§
													408(a) and (b) or to a
				qualified defined contribution plan described in
				26 U.S.C.
				§
													401(a);
(2) On or after January 1, 2007, to a
				qualified defined benefit plan described in
				26 U.S.C.
				§
													401(a) or to an
				annuity contract described in
				26 U.S.C. §
													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
(3) On or after January 1, 2008,
				to a Roth IRA described in
				26
				U.S.C. §
													408A; and
iv. Effective January 1, 2002, the definition
				of eligible rollover distribution also includes a distribution to a surviving
				spouse or to a spouse or former spouse who is an alternate payee under a
				qualified domestic relations order, as defined in
				26 U.S.C. §
												414(p).