January 1, 1993, the direct transfer from trustee to trustee of eligible
rollover distributions will be permitted, i.e., if the distributee
of any eligible rollover distribution elects to have the distribution paid
directly to an eligible retirement plan, and specifies the eligible retirement
plan to which the distribution is to be paid, then the distribution will be
paid to that eligible retirement plan in a direct rollover by check payable and
delivered to the eligible retirement plan by regular mail or electronically.
Special Tax Notice Regarding Plan Payments, Eligible Rollover Distribution
Election Form and these procedures are to be provided to a distributee
within 90 to 30 days prior to the scheduled date of his or her distribution,
preferably at the time of receipt of notice of separation, retirement or other
event causing an eligible rollover distribution to occur, unless after the
receipt thereof the distributee waives his or her
right to consider the contents of the Special Tax Notice Regarding Plan
Payments for at least 30 days by executing the Election To Accelerate Plan
Distribution form, and with respect to a series of periodic payments over a
period of less than ten years that are eligible rollover distributions, the
Special Tax Notice Regarding Plan Payments will also be provided to the distributee annually until distributions cease.
rollover of eligible rollover distributions during a year that are expected to
total less than $200.00 are not permitted.
of an eligible rollover distribution of $500.00 or less is not permitted.
rollover to more than one recipient plan is not permitted.
6. In order to effectuate a direct rollover, the distributee must complete and return the Eligible Rollover Distribution Election Form and provide adequate information for a direct rollover election, including the name and address of the recipient plan, identification of the recipient plan type, a representation that the recipient plan is an eligible retirement plan and consent of the recipient plan to receipt of the direct rollover.
distributee is not permitted to change his or her
election to make or not make a direct rollover after the distributee’s
right to change the form of his or her distribution under the plan has expired.
a distributee does not affirmatively elect to make or
not make a direct rollover by completing and returning the Eligible Rollover
Distribution Election Form prior to the scheduled date of the distribution, the
default procedure will apply such that the distributee
will be treated as having elected not to make a direct rollover, 20% will be
withheld for federal income tax purposes and the distribution will be made
directly to the distributee at his or her last known
address by regular mail or electronically.
distributee’s election to make or not make a direct
rollover with respect to one payment in a series of periodic payments will be
treated as applying to all subsequent payments in the series; however, the distributee will be permitted at any time to change, with
respect to subsequent payments, a previous election by completing and returning
a new Eligible Rollover Distribution Election Form.
a direct rollover of an eligible rollover distribution is not elected by the distributee, 20% will be withheld for federal income tax
purposes and remitted to the Internal Revenue Service.
rollovers of eligible rollover distributions will be permitted by and these
procedures apply to members’ surviving spouses and members’ spouses or former
spouses who are alternate payees under eligible domestic relations orders.
to members’ non-spousal beneficiaries are not eligible rollover distributions,
are not subject to the 20% withholding requirement, and may not be rolled over,
either directly or otherwise.
the case of a series of periodic payments that are a combination of both
eligible rollover distributions and non-taxable or non-eligible benefits, the
eligible rollover distribution portion of the periodic payment will be the same
proportion that the total series amount of the eligible rollover distribution
portion bears to the total series amount of the payments, i.e., it is presumed
that both eligible and non-taxable or non-eligible amounts are a part of every
payment in the series and not that all eligible amounts are paid until
exhausted and then all other amounts are paid.
eligible rollover distributions will be received by the plan.
any portion of these procedures is in conflict with the Internal Revenue Code,
the Unemployment Compensation Amendments of 1992 or Treasury Regulations, then
that portion of these procedures will be void and of no effect, it being the
intent of these procedures to fully comply with the mandatory requirements of
the Internal Revenue Code, the Unemployment Compensation Amendments of 1992 and
Treasury Regulations regarding eligible rollover distributions from the plan.