2018 Louisiana Laws
Revised Statutes
TITLE 11 - Consolidated Public Retirement
RS 11:792 - Direct rollover
§792. Direct rollover
A. The provisions of this Section shall apply to all eligible distributions by the system made on or after January 1, 1993, for purposes of compliance with Section 401(a)(31) of the Internal Revenue Code. Notwithstanding any other provision of law to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the board of trustees, to have any portion of an "eligible rollover distribution", as specified by the distributee, paid directly to an "eligible retirement plan", as those terms are defined below.
B. An "eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of a distributee. Effective January 1, 2002, the definition of eligible rollover distribution shall also include a distribution to a surviving spouse, or to a former spouse with whom a benefit or a return of employee contributions is to be divided pursuant to R.S. 11:291(B) and who is an alternate payee under a domestic relations order. An eligible rollover distribution shall 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 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 that such distribution is required under Section 401(a)(9) of the Internal Revenue Code.
(3) The portion of any distribution that is not includible in gross income; provided, however, 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, but such portion may be transferred only:
(a) 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;
(b) 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
(c) On or after January 1, 2008, to a Roth IRA described in Section 408A of the Internal Revenue Code.
(4) Any other distribution which the Internal Revenue Service does not consider eligible for rollover treatment, such as certain corrective distributions necessary to comply with the provisions of Section 415 of the Internal Revenue Code or any distribution that is reasonably expected to total less than two hundred dollars during the year.
C. An "eligible retirement plan" shall mean 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 as described in Section 401(a) of the Internal Revenue Code.
(5) Effective January 1, 2002, an eligible deferred compensation plan described in Section 457(b) of the Internal Revenue Code that is maintained by an eligible governmental employer, provided the plan contains provisions to account separately for amounts transferred into such plan.
(6) Effective January 1, 2002, an annuity contract described in Section 403(b) of the Internal Revenue Code.
(7) Effective January 1, 2008, a Roth IRA described in Section 408A of the Internal Revenue Code.
D. A "distributee" as provided for in this Section shall include:
(1) A member or former member.
(2) The member's or former member's surviving spouse, or the member's or former member's former spouse with whom a benefit or a return of employee contributions is to be divided pursuant to R.S. 11:291(B) and who is the alternate payee under a domestic relations order, with reference to an interest of the member or former spouse.
(3) Effective January 1, 2010, the member's or former member's non-spouse beneficiary, provided the specified distribution is to an eligible retirement plan as defined in Paragraphs (C)(1) and (2) of this Section established for the purpose of receiving the distribution, and the account or annuity will be treated as an "inherited" individual retirement account or annuity.
(4) Any other beneficiary as authorized under the Internal Revenue Code and as required to maintain governmental plan tax qualification status.
E. A "direct rollover" shall mean a payment by the system to the eligible retirement plan specified by the distributee.
F. Repealed by Acts 2010, No. 637, §2, effective July 1, 2010.
Acts 1995, No. 586, §1, eff. July 1, 1995; Acts 2010, No. 637, §§1, 2, eff. July 1, 2010; Acts 2014, No. 727, §1, eff. July 1, 2014.
