Governmental Plans

[Guest slt]

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!

[Everett Moreland]

Governmental plans are subject to the same direct rollover rules as apply to private plans

[Guest slt]

Thank you! I have another question if anyone can help.... Must a person be an active participant of a receiving plan in order for a rollover to constitute an eligible rollover distribution? In other words, what if the individual is not receiving distributions from the plan at the time of rollover (and never will)?

Again, thanks for any help.