§5-10-27c. Direct rollovers


Published: 2015

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WVC 5 - 10 - 27 C

§5-10-27c. Direct rollovers.

(a) Except where otherwise stated, this section applies to

distributions made on or after January 1, 1993. Notwithstanding

any provision of this article to the contrary that would otherwise

limit a distributee's election under this system, a distributee may

elect, at the time and in the manner prescribed by the board, to

have any portion of an eligible rollover distribution paid directly

to an eligible retirement plan specified by the distributee in a

direct rollover. For purposes of this section, the following

definitions apply:

(1) "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

of the following: (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 the joint life expectancies of the distributee

and the distributee's designated beneficiary, or for a specified

period of ten years or more; (ii) any distribution to the extent

the distribution is required under Section 401(a)(9) of the

Internal Revenue Code; (iii) the portion of any distribution that

is not includable in gross income determined without regard to the

exclusion for net unrealized appreciation with respect to employer

securities; and (iv) any hardship distribution described in Section

401(k)(2)(B)(i)(iv) of the Internal Revenue Code. For distributions after December 31, 2001, a portion of a distribution

shall not fail to be an eligible rollover distribution merely

because the portion consists of after-tax employee contributions

which are not includable in gross income. However, this portion

may be paid only to an individual retirement account or annuity

described in Section 408(a) or (b) of the Internal Revenue Code, or

(for taxable years beginning before January 1, 2007) to a qualified

trust which is part of a defined contribution plan described in

Section 401(a) or (for taxable years beginning after December 31,

2006) to a qualified trust or to an annuity contract described in

Section 403(a) or (b) of the Internal Revenue Code that agrees to

separately account for amounts transferred (including interest or

earnings thereon), including separately accounting for the portion

of the distribution which is includable in gross income and the

portion of the distribution which is not so includable, or (for

taxable years beginning after December 31, 2007) to a Roth IRA

described in Section 408A of the Internal Revenue Code.

(2) "Eligible retirement plan" means an individual retirement

account described in Section 408(a) of the Internal Revenue Code,

an individual retirement annuity described in Section 408(b) of the

Internal Revenue Code, an annuity plan described in Section 403(a)

of the Internal Revenue Code or a qualified plan described in

Section 401(a) of the Internal Revenue Code that accepts the

distributee's eligible rollover distribution: Provided, That in

the case of an eligible rollover distribution prior to January 1, 2002, to the surviving spouse, an eligible retirement plan is

limited to an individual retirement account or individual

retirement annuity. For distributions after December 1, 2001, an

eligible retirement plan also means an annuity contract described

in Section 403(b) of the Internal Revenue Code and an eligible plan

under Section 457(b) of the Internal Revenue Code 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 and which agrees to separately account for amounts

transferred into the plan from this system. For distributions

after December 31, 2007, an eligible retirement plan also means a

Roth IRA described in Section 408A of the Internal Revenue Code:

Provided, That in the case of an eligible rollover distribution

after December 31, 2007, to a designated beneficiary (other than a

surviving spouse) as such term is defined in Section 402(c)(11) of

the Internal Revenue Code, an eligible retirement plan is limited

to an individual retirement account or individual retirement

annuity which meets the conditions of Section 402(c)(11) of the

Internal Revenue Code.

(3) "Distributee" means an employee or former employee. In

addition, 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 with respect

to governmental plans, are distributees with regard to the interest of the spouse or former spouse. For distributions after December

31, 2007, "distributee" also includes a designated beneficiary

(other than a surviving spouse) as such term is defined in Section

402(c)(11) of the Internal Revenue Code.

(4) "Direct rollover" means a payment by the retirement system

to an eligible retirement plan.

(b) Nothing in this section may be construed as permitting

rollovers into this system or any other system administered by the

retirement board.


Note: WV Code updated with legislation passed through the 2015 Regular Session

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