New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 6 - DEFINED CONTRIBUTION RETIREMENT PROGRAM › Subchapter 13 - ROLLOVERS › Section 17:6-13.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
For purposes of this subchapter, the following definitions
				  shall apply:
"Distributee" includes an employee or former employee. In
				  addition, the employee's or former employee's surviving spouse and the
				  employee's or former employee's 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 (including, without limitation, a civil union partner) under
				  17:6-8.2. In the case of a
				  nonspouse beneficiary, the direct rollover may be made only to an individual
				  retirement account or annuity ("IRA") described in IRC §§ 408(a) or
				  408(b) that is established on behalf of the designated nonspouse beneficiary
				  and that will be treated as an inherited IRA pursuant to the provisions of IRC
				  § 402(c)(11). Also, in this case, the determination of any required
				  minimum distribution under IRC § 401(a)(9) that is ineligible for rollover
				  shall be made in accordance with Internal Revenue Service Notice 2007-7,
				  Q&A 17 and 18, 2007-5 I.R.B. 395.
"Eligible Retirement Plan" is any program defined in IRC
				  §§ 401(a)(31) and 402(c)(8)(B) that accepts the Distributee's
				  Eligible Rollover Distribution, as follows:
1. An individual retirement account under IRC §
				  408(a);
2. An individual retirement annuity under IRC § 408(b)
				  (other than an endowment contract);
3. A Roth individual retirement plan under IRC §
				  408A;
4. A qualified trust;
5. An annuity plan under IRC § 403(a);
6. An eligible deferred compensation plan under IRC §
				  457(b), which is maintained by an eligible governmental employer under IRC
				  § 457(e)(1)(A) (so long as the plan agrees to separately account for
				  amounts rolled into the plan); and
7. An annuity contract under IRC § 403(b).
"Eligible rollover distribution" is any distribution from the
				  Retirement Plan of any portion of the balance to the credit of the distributee,
				  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 specified period of 10 years or more;
2. Any distribution to the extent such distribution is
				  required under IRC § 401(a)(9); or
3. The portion of any distribution that is not includible in
				  gross income, provided that any portion of any distribution that is not
				  includible in gross income may be an eligible rollover distribution for
				  purposes of a rollover to either:
i. A traditional individual retirement account or individual
				  retirement annuity under IRC §§ 408(a) or 408(b); or
ii. A qualified trust which is part of a plan which is a
				  defined contribution plan under IRC §§ 401(a) or 403(a) that will
				  separately account for the distribution, including the taxable and non-taxable
				  portions of the distribution, in a direct trustee-to-trustee transfer.