19-2-1011. Limitations on eligible rollover distributions. (1) An eligible rollover distribution may not include:
(a) any distribution that is one of a series of substantially equal periodic payments made at least annually for:
(i) the life or the life expectancy of the distributee;
(ii) the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary; or
(iii) a specified period of 10 years or more;
(b) any distribution to the extent the distribution is required under section 401(a)(9) of the Internal Revenue Code, 26 U.S.C. 401(a)(9);
(c) the portion of any distribution that is not includable in gross income; or
(d) any other distribution that is reasonably expected to total less than $200 during the year.
(2) (a) Effective January 1, 2002, a portion of a distribution may not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includable in gross income. However, that portion may be transferred only to:
(i) an individual retirement account or annuity described in section 408(a) or (b) of the Internal Revenue Code, 26 U.S.C. 408(a) or (b);
(ii) a qualified defined contribution plan described in section 401(a) of the Internal Revenue Code, 26 U.S.C. 401(a);
(iii) a qualified plan described in section 403(a) of the Internal Revenue Code, 26 U.S.C. 403(a);
(iv) on or after January 1, 2007, a qualified defined benefit plan described in section 401(a) of the Internal Revenue Code, 26 U.S.C. 401(a); or
(v) an annuity contract described in section 403(b) of the Internal Revenue Code, 26 U.S.C. 403(b).
(b) The plans described in subsections (2)(a)(ii), (2)(a)(iv), and (2)(a)(v) must separately account for amounts that are transferred and earnings on those amounts, including separately accounting for the portion of the distribution that is includable in gross income and the portion of the distribution that is not includable.
History: En. Sec. 9, Ch. 284, L. 2009; amd. Sec. 4, Ch. 240, L. 2013.
Structure Montana Code Annotated
Title 19. Public Retirement Systems
Chapter 2. Public Employees' Retirement General Provisions
19-2-1001. Maximum contribution and benefit limitations
19-2-1002. Termination of plan
19-2-1003. Transfer of dormant, nonvested member-accumulated contributions
19-2-1004. Exemption from taxes and legal process
19-2-1007. Required distributions
19-2-1008. Budget Act superseded
19-2-1010. Retaining qualified plan status -- content of plan document -- board rulemaking authority
19-2-1011. Limitations on eligible rollover distributions
19-2-1013. Compliance with federal restrictions on interest rate crediting
19-2-1014. Compliance with federal laws regarding service in uniformed services
19-2-1015. Probate and nonprobate transfer statutes superseded