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State government plan - Rollovers?


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Posted

Can a state governmental DC plan (established pursuant to 401(a)) receive eligible rollover or plan-to-plan transfers of lump-sum distributions from participants of another eligible retirement plan (either a governmental plan or a nongovernmental plan)? I know that private plans can receive rollovers (if the written plan document allows for it), but am completely unsure if state plans can.

Thank you for your help!

Posted

Yes, so long as the plan making the distribution is also a 401(a) plan, and if the written plan document allows for it. This is in I.R.C. § 402, which is the same for governmental and private plans.

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Employee benefits legal resource site

Employee benefits legal resource site

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