Non-spouse rollovers

[Guest Sieve]

I have read that, effective after 12/31/2009, non-spouse rollovers are required to be made available from qualified plans (rather than just permitted to be made available), but I cannot find that PPA '06 technical correction provision in WRERA '08. Does anyone know where that particular provision resides in the new Act?

[Belgarath]

Try Section 108(f) of the new Act. I'd paste it in here, but the only one I have handy is a PDF and I'm not clever enough...

Well, maybe this will work.

(f) AMENDMENTS RELATED TO SECTION 829.—

(1) Section 402©(11) of the 1986 Code is amended—

(A) by inserting ‘‘described in paragraph (8)(B)(iii)’’

after ‘‘eligible retirement plan’’ in subparagraph (A), and

(B) by striking ‘‘trust’’ before ‘‘designated beneficiary’’

in subparagraph (B).

(2)(A) Section 402(f)(2)(A) of the 1986 Code is amended

by adding at the end the following new sentence: ‘‘Such term

shall include any distribution to a designated beneficiary which

would be treated as an eligible rollover distribution by reason

of subsection ©(11), or section 403(a)(4)(B), 403(b)(8)(B), or

457(e)(16)(B), if the requirements of subsection ©(11) were

satisfied.’’

(B) Clause (i) of section 402©(11)(A) of the 1986 Code

is amended by striking ‘‘for purposes of this subsection’’.

© The amendments made by this paragraph shall apply

with respect to plan years beginning after December 31, 2009.

[Guest Sieve]

Thanks, B. I'd looked at WRERA Section 108(f) previously and didn't see what technical correction made the availability of the non-spouse rollover mandatory, but now, looking at it again in your post, I see that it's WRERA Section 108(f)(2)(A), which amends IRC Section 402(f)(2)(A) so that the cross reference from the definitional provision of the mandatory transfer language (IRC Section 401(a)(31)(D)) now picks up the non-spouse rollover.