13.01: Acceptance of Pre-tax Rollovers from "Eligible Retirement Plans"

      The following provisions are intended to implement the provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and to enable public
employees in Massachusetts to take advantage of the expanded tax-deferred roll-over
opportunities permitting the purchase of creditable service from assets held in other
tax-deferred retirement plans.

(1) A Retirement Board may accept any portion of an Eligible Rollover Distribution in
payment of all or a portion of a member's purchase of service credit or service buybacks
pursuant to M.G.L. c.32, §§ I through 28. A Retirement Board may accept an Eligible
Rollover Distribution paid directly to the system in a Direct Rollover. Rollovers from
other permissible sources will be allowed to the extent permitted by law, subject to any
conditions, proofs, or acceptance the Retirement Board deems appropriate.

(2) The following definitions shall apply to 840 CMR 13.08:

Direct Rollover is a payment from an Eligible Retirement Plan specified by the member
and made directly to the Retirement System.

Eligible Retirement Plan is any program defined in Code Sections 401(a)(31) and
402(c)(8)(B), from which the member has a right to an Eligible Rollover Distribution, as

      (a) an individual retirement account under Code Section 408(a)
      (b) an individual retirement annuity under Code Section 408(b) (other than an
      endowment contract);
      (c) a qualified plan under Code Sections 401(a) or 403(a)
      (d) an eligible deferred compensation plan under Code Section 457(b) which is
      maintained by a state, a political subdivision of a state, or any agency or
      instrumentality of a state or a political subdivision of a state; and
      (e) an annuity contract under Code Section 403(b).

Eligible Rollover Distribution is any distribution of all or any portion of the balance to
the credit of the member from an Eligible Retirement Plan. An Eligible Rollover
Distribution does not include:

       (a) 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 member
      or the joint lives (or joint life expectancies) of the member and the members
      designated beneficiary, or for a specified period of ten years or more;
      (b) any distribution to the extent such distribution is required under Section 401(a)(9)
      of the Internal Revenue Code (“Code”);
      (c) any distribution which is made upon hardship of the member; or
      (d) (the portion of any distribution that is not includible in gross income.


840 CMR 13.00 M.G.L. c. 7, § 50, c. 32, § 21.

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