Louisiana Revised Statutes 11:792 – Direct rollover
Terms Used In Louisiana Revised Statutes 11:792
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Annuity: means payments for life derived from the "accumulated contributions" of a member. See Louisiana Revised Statutes 11:701
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: means the eligible recipient of a pension, annuity, retirement allowance, or other benefit provided in this Chapter. See Louisiana Revised Statutes 11:701
- Board of trustees: means the board provided for in Part V of this Chapter to administer the retirement system. See Louisiana Revised Statutes 11:701
- Contract: A legal written agreement that becomes binding when signed.
- Eligible rollover distribution: means a distribution as defined in Louisiana Revised Statutes 11:701
- Employer: means the state of Louisiana, any city, parish, or other local school board, the State Board of Elementary and Secondary Education, any board created by La. See Louisiana Revised Statutes 11:701
- Internal Revenue Code: means the United States Internal Revenue Code of 1986, as amended. See Louisiana Revised Statutes 11:701
- Member: means any teacher included in the membership of the system as provided in Part II of this Chapter. See Louisiana Revised Statutes 11:701
- Retirement: means withdrawal from active service with a retirement allowance granted under the provisions of this Chapter. See Louisiana Revised Statutes 11:701
- Service: means service as a teacher within the meaning of Paragraph (33) of this Section. See Louisiana Revised Statutes 11:701
- Spouse: shall mean a person who is legally married to a member of this system and shall not include a person who is legally separated from a member of this system by a judgment of separation, unless such person has voluntarily reconciled with the member and which reconciliation is established by a court of competent jurisdiction. See Louisiana Revised Statutes 11:701
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 La. Rev. Stat. 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 La. Rev. Stat. 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.