Section 411-411-1 - DEFINITIONS1.Code. "Code" means the Internal Revenue Code of 1986, as amended.2.Eligible rollover distribution. "Eligible rollover distribution" means any distribution of all or any portion of the balance to the credit of the distributee. A. 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: 1 to an individual retirement account or annuity described in Code Section 408(a) or (b) or to a qualified defined contribution plan described in 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;2 on or after January 1, 2007, to a qualified defined benefit plan described in Code Section 401(a) or to an annuity contract described in 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; or3 on or after January 1, 2008, to a Roth IRA described in Code Section 408A.B. 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 QDRO.C. Effective January 1, 2007, the definition of an eligible rollover distribution also includes a distribution to a nonspouse beneficiary who is a designated beneficiary as defined in Code Section 401(a)(9)(E).D. 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 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;2 Any distribution to the extent such distribution is required under Code Section (401)(a)(9);3 The portion of any distribution that is not includible in gross income; and4 Any other distribution that is reasonably expected to total less than $200 during the year.3. Eligible retirement plan. "Eligible retirement plan" means any of the following that accepts the distributee's eligible rollover distribution: A. An individual retirement account described in Code Section 408(a);B. An individual retirement annuity described in Code Section 408(b);C. An annuity plan described in Code Section 403(a);D. A qualified trust described in Code Section 401(a);E. Effective January 1, 2002, an annuity contract described in Code Section 403(b);F. Effective January 1, 2002, a plan eligible under Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or a political subdivision of a state that agrees to separately account for amounts transferred into that plan from the retirement program; orG. Effective January 1, 2008, a Roth IRA described in Code Section 408A.4.Distributee. "Distributee" means a member or former member.5.A. Effective January 1, 2002, a distributee also includes the member's or former member's spouse and the member's or former member's spouse or former spouse who is the alternate payee under a QDRO.B. Effective January 1, 2007, a distributee also includes a nonspouse beneficiary who is a designated beneficiary as defined by Code Section 401(a)(9)(E). However, a nonspouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an "inherited" individual retirement account or annuity.6.Direct rollover. "Direct rollover" means a payment by Maine PERS to the eligible retirement plan specified by the distributee.7.QDRO. "QDRO" means qualified domestic relations order, as defined in Code Section 414(p).94-411 C.M.R. ch. 411, § 1