N.J. Admin. Code § 17:8-3.8

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:8-3.8 - Payment of pension loan balance upon retirement; order of use of funds from different account types

(a) If a participant elects to use funds available in his or her variable accumulation account to satisfy all or any portion of a pension loan, funds shall be used from the various Supplemental Annuity Collective Trust account types in a consecutive order to minimize Federal income tax liability for the participant. The order of use shall be as follows from first to last:

1. Regular account contributions;

2. Regular account earnings;

3. Tax-sheltered account; and

4. QVEC account.

N.J. Admin. Code § 17:8-3.8

New Rule, R.1997 d.294, effective 7/21/1997.
See: 29 New Jersey Register 1685(a), 29 New Jersey Register 3269(a).