Montana Code 19-3-2123. Payout of vested account balances when terminating plan membership
19-3-2123. Payout of vested account balances when terminating plan membership. Except as provided in 19-3-2142, any time after termination of service, a member or the member’s beneficiary may terminate plan membership by filing a written application with the board and removing the member’s vested account balance from the plan through any combination of the following payout options, each of which is subject to applicable regulations of the internal revenue service:
Terms Used In Montana Code 19-3-2123
- 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.
- 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
- Member: means a person with a retirement account in the defined contribution plan. See Montana Code 19-3-2101
(1)a direct rollover to an eligible retirement plan, which includes an individual retirement account or annuity and, effective January 1, 2008, a Roth IRA provided for in section 408A of the Internal Revenue Code, 26 U.S.C. § 408A, pursuant to section 401(a)(31) of the Internal Revenue Code, 26 U.S.C. § 401(a)(31);
(2)a regular rollover to an eligible retirement plan pursuant to section 402(c) of the Internal Revenue Code, 26 U.S.C. § 402(c); or
(3)a lump-sum distribution of the member’s vested account balance.