§ 24-7-719 - Rollover of distributions.

24-7-719. Rollover of distributions.

(a) As used in this section:

(1) "Direct rollover" means the payment of a distribution from the Arkansas Teacher Retirement System directly to an individual retirement arrangement or another eligible benefit plan;

(2) "Eligible retirement plan" means an individual retirement account, individual retirement annuity, individual retirement arrangement, or another employer benefit plan that accepts direct rollovers; and

(3) "Eligible rollover distribution" means that portion of a distribution that may be rolled over to an individual retirement arrangement or to another employer benefit plan.

(b) (1) Beginning January 1, 1993, a member or other eligible beneficiary receiving a distribution from the system may elect a direct rollover of the distribution if the funds consist of an eligible rollover distribution.

(2) The amount under subdivision (b)(1) of this section shall be paid to the trustee of the eligible retirement plan.

(c) Subsection (b) of this section applies to distributions made under 24-7-709 -- 24-7-711, 24-7-716, 24-7-720, and 24-7-1308.

(d) This section does not require the system to authorize a direct rollover of a distribution if:

(1) The distribution is not eligible to be treated as a direct rollover under the Internal Revenue Code; or

(2) The depository institution receiving the distribution is not eligible to receive a direct rollover under the Internal Revenue Code.