PURPOSE: This rule describes the direct rollover option authorized by section 50.1260, RSMo.

1. (1) A distributee may elect to have an eligible rollover distribution paid directly to a single eligible retirement plan specified by the distributee. However, this election may not be made if the total eligible rollover distributions paid to the distributee will be less than two hundred dollars ($200).
2. (2) A distributee may elect to divide an eligible rollover distribution so that part is paid directly to an eligible retirement plan and part is paid to the distributee. However, the part paid directly to the eligible retirement plan must total at least five hundred dollars ($500).
3. (3) A distributee may elect a direct rollover after having received a written notice which complies with the rules of Internal Revenue Code (Code) section 402(f). In general, payment to a distributee shall not begin until thirty (30) days after the notice is given. However, payment may be made sooner if the notice clearly informs the distributee of the right to a period of at least thirty (30) days to consider the decision of whether or not to make a direct rollover, and the distributee, after receiving the notice, makes an affirmative election to receive an immediate distribution. A distributee who fails to make an election in the thirty (30)-day period shall receive the eligible rollover distribution immediately after the thirty (30)-day period expires.

4. (4) For purposes of this regulation, the following terms have the meanings set forth below:

   1. (A) An “eligible rollover distribution” is any distribution or withdrawal payable under the terms of this plan to a participant, which is described in Code section 402(c)(4). In general, this term includes any single-sum distribution, and any distribution which is one in a series of substantially equal periodic payments made over a period of less than ten

5. (10) years, and is less than the distributee’s life expectancy. However, an eligible rollover distribution does not include the portion of any distribution that constitutes a minimum required distribution under Code section 401(a)(9). Such term also does not include a distribution to the participant’s beneficiary, unless the beneficiary is the participant’s spouse.

   1. (B) “Eligible retirement plan” means:

      1. 1. An individual retirement account

described in Code section 408(a);

1. 2. An individual retirement annuity

described in Code section 408(b);

1. 3. An annuity plan described in Code

section 403(a); and

1. 4. A retirement plan qualified under

Code section 401(a), but only if the terms of the plan permit the acceptance of rollover distributions. However, in the case of an eligible rollover distribution to a beneficiary who is a surviving spouse, an “eligible retirement plan” is an individual retirement account or an individual retirement annuity.

1. (C) “Distributee” means a participant or the spouse of a deceased participant.

AUTHORITY: section 50.1032, RSMo Supp. 1999.* Original rule filed Sept. 29, 2000, effective March 30, 2001.

*Original authority: 50.1032, RSMo 1995.