Rollovers

[Guest TroyRiley]

The Governmental Plans Answer Book published by Aspen Publishers states that federal law permits rollovers among 401(a), 403(b), 457 plans, and IRAs for any participant who has had a severance from employment with the transferring employer and who is performing services for the entity maintaining the receiving plan.

Is that right? Are rollovers only allowed into the accounts of "active" members in the plan? If federal law doesn't permit inactive members from rolling over money into the plan, please provide a cite. Thanks in advance.