4.38.605 Rollover.
A. A distributee may elect, at the time and in the manner prescribed by the committee, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
B. Effective January 1, 2008, in addition to the election set forth in subsection A above, a distributee may elect, at the time and in the manner prescribed by the committee, to have any portion of an eligible rollover distribution paid directly to a Roth IRA specified by the distributee in a direct rollover in accordance with the provisions of Code section 408A(e). Any such distribution to a Roth IRA shall comply with the provisions of Code section 402(c). In addition, the limitation on adjusted gross income set forth in the following paragraph shall apply for distributions to a Roth IRA on or after January 1, 2008 and prior to January 1, 2010.
In accordance with Code section 408A(c)(3)(B) (as in effect and applicable to distributions after December 31, 2007 and to tax years beginning prior to January 1, 2010), a rollover to a Roth IRA shall only be allowed if, for the tax year of the distribution to which the rollover relates, the distributee’s adjusted gross income does not exceed $100,000 and the distributee is not a married individual filing a separate return. The limitation in the foregoing sentence shall not apply for distributions on or after January 1, 2010.
C. For purposes of this Section 4.38.605, the following definitions apply:
1. An "eligible rollover distribution" is 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 beneficiary, or for a specified period of 10 years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9); and 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).
2. An "eligible retirement plan" is an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(a), an annuity contract described in Code Section 403(b), and an eligible plan under Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state or a qualified trust described in Code Section 401(a), that accepts the distributee’s eligible rollover distribution.
3. A "distributee" includes a participant or former participant, a participant’s or former participant’s surviving spouse and a participant’s or former participant’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p).
Effective January 1, 2007, a "distributee" shall also include a nonspouse beneficiary. A nonspouse beneficiary may elect a direct trustee to trustee transfer to an individual retirement plan ("IRA") that is established for the purpose of receiving the distribution on behalf of a designated beneficiary who is a nonspouse beneficiary. The IRA must be established in a manner that identifies it as an IRA with respect to a deceased individual and also identifies the deceased individual and the beneficiary. Any such transfer by a nonspouse beneficiary shall be subject to all the conditions and restrictions specified in this Section 4.38.605. Such a transfer shall also comply with the rules of Code Section 402(c)(11) and with all other applicable rules and regulations governing such transfers that are issued by the Internal Revenue Service.
4. A "direct rollover" is a payment by the plan to the eligible retirement plan specified by the distributee. (Ord. 7264-NS § 6, 2012)