Okla. Admin. Code § 590:10-7-16

Current through Vol. 42, No. 8, January 2, 2025

Section 590:10-7-16 - Rollovers

(a) This section applies to the Oklahoma Public Employees Retirement System and to the Uniform Retirement System for Justices and Judges.

(b) A distributee may elect to have eligible rollover distributions paid in a direct rollover to an eligible retirement plan the distributee specifies, pursuant to Section 401(a)(31) of the federal Internal Revenue Code.

(c) "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: 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 ten years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; the portion of any distribution that is not includible in gross income; and any other distribution that is reasonably expected to total less than Two Hundred Dollars ($200.00) during the year. 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 Section 414(p) of the Internal Revenue Code.

(d) 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 Section 408(a) or (b) of the Internal Revenue Code or to a qualified defined contribution plan described in Section 401(a) of the Internal Revenue Code 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 Section 401(a) of the Internal Revenue Code or to an annuity contract described in Section 403(b) of the Internal Revenue Code 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 Section 408A of the Internal Revenue Code.

(e) "Eligible retirement plan" means any of the following that accepts the distributee's eligible rollover distribution:

(1) An individual retirement account described in Section 408(a) of the Internal Revenue Code;

(2) an individual retirement annuity described in Section 408(b) of the Internal Revenue Code;

(3) an annuity plan described in Section 403(a) of the Internal Revenue Code;

(4) a qualified trust described in Section 401(a) of the Internal Revenue Code;

(5) effective January 1, 2002, an annuity contract described in Section 403(b) of the Internal Revenue Code;

(6) effective January 1, 2002, a plan eligible under Section 457(b) of the Internal Revenue Code 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 system; or

(7) effective January 1, 2008, a Roth IRA described in Section 408A of the Internal Revenue Code.

(f) "Distributee" means an employee or former employee. It also includes 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 Section 414(p) of the Internal Revenue Code. Effective January 1, 2007, a distributee further includes a non-spouse beneficiary who is a designated beneficiary as defined by Section 401(a)(9)(E) of the Internal Revenue Code. However, a non-spouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purposes of receiving the distribution, and the account or annuity will be treated as an "inherited" individual retirement account or annuity.

(g) "Direct rollover" means a payment by the plan to the eligible retirement plan specified by the distributee.

Okla. Admin. Code § 590:10-7-16

Added as 590:10-7-15 at 18 Ok Reg 548¹; eff 12-28-00 through 7-14-01²; Added at 18 Ok Reg 3258, eff 7-26-01; Amended at 22 Ok Reg 2679, eff 6-7-05 (emergency); Amended at 23 Ok Reg 1482, eff 5-25-06; Amended at 24 Ok Reg 1135, eff 5-11-07; Amended at 27 Ok Reg 1032, eff 5-13-10; Amended at 29 Ok Reg 49, eff 9-28-11 (emergency); Amended at 29 Ok Reg 498, eff 5-11-12

1This rule was first added by emergency action using a different number (590:10-7-15 ), which created a duplication in numbering. The rule was later added at (590:10-7-16) by permanent action. See also Editor's Note 2 below.

2This emergency rule expired before being superseded by a permanent action. Upon expiration of an emergency action enacting a new rule, the text of the rule is no longer effective. Therefore, on 7-15-01 (after the 7-14-01 expiration of this emergency action), the emergency rule called "Rollovers" and numbered as 590:10-7-15 was no longer effective, and remained as such until added by permanent action at this number (590:10-7-16) on 7-26-01.