§ 11-50-114.3 — Trustee-to-trustee transfer - Treatment of trust -

Oklahoma § 11-50-114.3

• Jurisdiction: Oklahoma
• Title 11: Cities And Towns

Text

Rules. A. An individual who has been designated, pursuant to Section 401(a)(9)(E) of the Internal Revenue Code of 1986, as amended, as the beneficiary of a deceased member and who is not the surviving spouse of the member, may elect, in accordance with Section 402(c)(11) of the Internal Revenue Code of 1986, as amended, to have a direct trustee-to-trustee transfer of any portion of such beneficiary's distribution from the System made only to an individual retirement account or individual retirement annuity (other than an endowment contract) described in Section 408(a) or (b) of the Internal Revenue Code of 1986, as amended (IRA) (including, effective for distributions after December 18, 2015, a SIMPLE IRA but only if such contribution occurs after the two-year period described in Section 72(t)(6) of the Internal Revenue Code of 1986, as amended, and is made in accordance with the Protecting Americans from Tax Hikes Act of 2015), or, effective for distributions after December 31, 2007, to a Roth individual retirement account or annuity described in Section 408A of the Internal Revenue Code of 1986, as amended (Roth IRA), that is established on behalf of such designated individual for the purpose of receiving the distribution. If such transfer is made, then: 1. For distributions made after December 31, 2006, but prior to July 1, 2010, the transfer is treated as an eligible rollover distribution for purposes of Section 402(c)(11) of the Internal Revenue Code of 1986, as amended. For plan years beginning after December 31, 2009, the transfer is treated as an eligible rollover distribution; 2. The transferee IRA is treated as an inherited individual retirement account or an inherited individual retirement annuity (within the meaning of Section 408(d)(3)(C) of the Internal Revenue Code of 1986, as amended), and must be titled in the name of the deceased member, for the benefit of the beneficiary; and 3. The required minimum distribution rules of Section 401(a)(9)(B) (other than clause iv thereof) of the Internal Revenue Code of 1986, as amended, apply to the transferee IRA. B. A trust maintained for the benefit of one or more designated beneficiaries shall be treated in the same manner as a designated beneficiary. C. The State Board shall promulgate such rules as are necessary to implement the provisions of this section.

Legislative History

Added by Laws 2007, c. 152, § 4, eff. July 1, 2007. Amended by Laws 2009, c. 169, § 4, emerg. eff. May 11, 2009; Laws 2010, c. 437, § 6, emerg. eff. June 9, 2010; Laws 2011, c. 140, § 4, emerg. eff. April 29, 2011; Laws 2012, c. 53, § 5, emerg. eff. April 16, 2012; Laws 2017, c. 132, § 2, emerg. eff. May 1, 2017; Laws 2018, c. 20, § 5, eff. Nov. 1, 2018.