La. Admin. Code tit. 58 § XIX-105

Current through Register Vol. 50, No. 9, September 20, 2024

Section XIX-105 - Accumulated Contributions, Rollovers

A. As provided in R.S. 11:1457(C), the following definitions are revised.

2009 RMDs of a Participant or Beneficiary - amounts that the participant or beneficiary would have been required to receive as a required minimum distribution under IRC §401(a)(9) for the 2009 distribution calendar year.

Distributee -

a. a person who is distributed benefits from the plan and shall include an employee or former employee. In addition:

i. 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;

ii. a nonspouse beneficiary as designated by the member.

Eligible Retirement Plan -

a. an eligible plan under IRC §457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that agrees to separately account for amounts transferred into such plan from this plan, an individual retirement account described in IRC §408(a), an individual retirement annuity described in IRC §408(b), an annuity plan described in IRC §403(a), an annuity contract described in IRC §403(b), or a qualified plan described in IRC §401(a), that accepts the distributee's eligible rollover distribution;

b. 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.

Eligible Rollover Distribution - 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:

a.

i.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 distribute and the distributee's designated beneficiary; or

ii. for a specified period of 10 years or more;

b. any distribution to the extent such distributions is required under IRC §401(a)(9);

c. any hardship distribution attributable to elective deferrals;

d. the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and

e. any other distribution(s) that is reasonably expected to total less than $200 during a year.

B. Eligible Retirement Plan

1. Effective for distributions on or after January 1, 2007:

a. eligible retirement plan shall include the individual retirement account or annuity in the name of the deceased participant for the benefit of a nonspouse beneficiary, who receives an eligible rollover distribution from the plan on account of the death of a participant, provided that the individual retirement account or annuity is treated as an inherited IRA and that the minimum distribution rules applicable in the event the IRA owner dies before the entire interest is distributed shall apply to the transferee IRA and the transferee IRA does not provide the beneficiaries with the special rules for surviving spouse beneficiaries;

b. a Roth IRA is an eligible retirement plan with respect to distributions from the Fund that do not consist of designated Roth accounts, so long as the restrictions that apply to a transfer from a traditional IRA (non-Roth) to a Roth IRA are satisfied.

C. Eligible Rollover Distribution

1. If any portion of an eligible rollover distribution is attributable to payments or distributions from a designated Roth account, an eligible retirement plan with respect to such portion shall include only another designated Roth account of the individual from whose account the payments or distributions were made, or a Roth IRA of such individual.

2. Effective January 1, 2003, 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 to a qualified defined contribution plan described in IRC §401(a) 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 so includible.

3. Effective January 1, 2007, eligible rollover distributions shall include:

a. a distribution to a nonspouse beneficiary on account of the participant's death, so long as any rollover distribution is transferred to an individual retirement account or annuity that is treated as an inherited account of the deceased participant;

b. after-tax contributions held in a plan qualified under IRC §401(a)

4. Effective January 1, 2007, distributions from the plan that do not consist of designated Roth accounts shall be eligible rollover distributions with respect to a Roth IRA and may be rolled over to a Roth IRA, subject to the restrictions that apply to a transfer from a traditional (non-Roth) IRA to a Roth IRA.

5. During 2009, 2009 RMDs shall be treated as eligible rollover distributions for purposes of making available the direct rollover of eligible rollover distributions that include such amount, but not for purposes of withholding federal income taxes on the amount when it is distributed.

La. Admin. Code tit. 58, § XIX-105

Promulgated by the Board of Trustees of the Assessors' Retirement Fund, LR 39:2188 (August 2013).

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1404(A), R.S. 11:1457(C), and R.S. 49.950 et seq.