{"data":{"id":"us-ok/okla.-stat.-tit.-11-11-49-106.3","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 11, § 11-49-106.3","heading":"Payment of distribution to retirement plan","body":"A. For distributions made on or after January 1, 2002, and\n\nnotwithstanding any provision of the System to the contrary that\n\nwould otherwise limit a Distributee's election hereunder, a\n\nDistributee, including a nonspouse designated beneficiary, to the\n\nextent permitted under paragraph 3 of subsection B of this section,\n\nmay elect, at the time and in the manner prescribed by the State\n\nBoard, to have any portion of an Eligible Rollover Distribution paid\n\ndirectly to an Eligible Retirement Plan specified by the Distributee\n\nin a Direct Rollover.\n\nB. For purposes of this section, the following definitions\n\nshall apply:\n\n1. \"Eligible Rollover Distribution\" means any distribution of\n\nall or any portion of the balance to the credit of the Distributee,\n\nexcept that an Eligible Rollover Distribution does not include any\n\ndistribution that is one of a series of substantially equal periodic\n\npayments (not less frequently than annually) made for the life (or\n\nlife expectancy) of the Distributee or the joint lives (or life\n\nexpectancies) of the Distributee and the Distributee's designated\n\nbeneficiary, or for a specified period of ten (10) years or more;\n\nany distribution to the extent such distribution is required under\n\nSection 401(a)(9) of the Internal Revenue Code of 1986, as amended;\n\nand the portion of any distribution that is not includable in gross\n\nincome. A portion of a distribution shall not fail to be an\n\nEligible Rollover Distribution merely because the portion consists\n\nof after-tax member contributions or any other distribution which is\n\nnot includable in gross income. However, such portion may be\n\ntransferred only:\n\n(a) from January 1, 2002, through December 31, 2006:\n\n(1) to an individual retirement account or annuity\n\ndescribed in Section 408(a) or (b) of the\n\nInternal Revenue Code of 1986, as amended, or\n\n(2) in a direct trustee-to-trustee transfer, to a\n\nqualified trust which is a part of a defined\n\ncontribution plan that agrees to separately\n\naccount for amounts so transferred, including\n\nseparately accounting for the portion of such\n\ndistribution which is includable in gross income\n\nand the portion of such distribution which is not\n\nso includable, and\n\n(b) on or after January 1, 2007:\n\n(1) to an individual retirement account or annuity\n\ndescribed in Section 408(a) or (b) of the\n\nInternal Revenue Code of 1986, as amended, or\n\n(2) in a direct trustee-to-trustee transfer, to a\n\nqualified trust or an annuity contract described\n\nin Section 403(b) of the Internal Revenue Code of\n\n1986, as amended, and such trust or contract\n\nprovides for separate accounting for amounts so\n\ntransferred (and earnings thereon), including\n\nseparately accounting for the portion of such\n\ndistribution which is includable in gross income\n\nand the portion of such distribution which is not\n\nso includable.\n\nEffective for distributions after December 31, 2007, such after-\n\ntax portion may also be directly transferred to a Roth individual\n\nretirement account or annuity described in Section 408A of the\n\nInternal Revenue Code of 1986, as amended, (Roth IRA), subject to\n\nany limitations described in Section 408A(c) of the Internal Revenue\n\nCode of 1986, as amended;\n\n2. \"Eligible Retirement Plan\" means an individual retirement\n\naccount described in Section 408(a) of the Internal Revenue Code of\n\n1986, as amended, an individual retirement annuity described in\n\nSection 408(b) of the Internal Revenue Code of 1986, as amended, an\n\nannuity plan described in Section 403(a) of the Internal Revenue\n\nCode of 1986, as amended, or a qualified trust described in Section\n\n401(a) of the Internal Revenue Code of 1986, as amended, that\n\naccepts the Distributee's Eligible Rollover Distribution. Effective\n\nJanuary 1, 2002, an Eligible Retirement Plan shall also mean an\n\nannuity contract described in Section 403(b) of the Internal Revenue\nannuity plan described in Section 403(a) of the Internal Revenue\n\nCode of 1986, as amended, or a qualified trust described in Section\n\n401(a) of the Internal Revenue Code of 1986, as amended, that\n\naccepts the Distributee's Eligible Rollover Distribution. Effective\n\nJanuary 1, 2002, an Eligible Retirement Plan shall also mean an\n\nannuity contract described in Section 403(b) of the Internal Revenue\n\nCode of 1986, as amended, and an eligible plan under Section 457(b)\n\nof the Internal Revenue Code of 1986, as amended, which is\n\nmaintained by a state, political subdivision of a state, or any\n\nagency or instrumentality of a state or political subdivision of a\n\nstate and which agrees to separately account for amounts transferred\n\ninto such plan from the System. Effective for distributions after\n\nDecember 31, 2007, an Eligible Retirement Plan includes a Roth IRA,\n\nsubject to any limitations described in Section 408A(c) of the\n\nInternal Revenue Code of 1986, as amended. Effective for\n\ndistributions after December 18, 2015, an Eligible Retirement Plan\n\nincludes a SIMPLE IRA in accordance with Section 408(p)(1)(B) of the\n\nInternal Revenue Code of 1986, as amended, for purposes of a\n\nrollover contribution to such SIMPLE IRA, but only if such rollover\n\ncontribution is made after December 18, 2015, and only if such\n\nrollover contribution occurs after the two-year period described in\n\nSection 72(t)(6) of the Internal Revenue Code of 1986, as amended;\n\n3. \"Distributee\" means a member whether or not the member is an\n\nactive firefighter. In addition, the member's surviving spouse and\n\nthe member's spouse or former spouse who is an alternate payee under\n\na qualified domestic order, as provided in subsection B of Section\n\n49-126 of this title, are Distributees with regard to the interest\n\nof the spouse or former spouse. A Distributee also includes the\n\nmember's nonspouse designated beneficiary, and certain trusts\n\ndescribed in Section 402(c)(11)(B) of the Internal Revenue Code of\n\n1986, as amended, pursuant to Section 401(a)(9)(E) of the Internal\n\nRevenue Code of 1986, as amended, who may elect any portion of a\n\npayment to be made in a Direct Rollover only to an individual\n\nretirement account or annuity (other than an endowment contract)\n\ndescribed in Section 408(a) or (b) of the Internal Revenue Code of\n\n1986, as amended (IRA) (including, effective for distributions after\n\nDecember 18, 2015, a SIMPLE IRA but only if such contribution occurs\n\nafter the two-year period described in Code Section 72(t)(6) and is\n\nmade in accordance with the Protecting Americans from Tax Hikes Act\n\nof 2015), or, effective for distributions after December 31, 2007,\n\nto a Roth IRA, that is established on behalf of such nonspouse\n\ndesignated beneficiary for the purpose of receiving the distribution\n\nand that will be treated as an inherited IRA pursuant to the\n\nprovisions of Section 402(c)(11) of the Internal Revenue Code of\n\n1986, as amended. Also, in this case, the determination of any\n\nrequired minimum distribution under Section 401(a)(9) of the\n\nInternal Revenue Code of 1986, as amended, that is ineligible for\n\nrollover shall be made in accordance with Notice 2007-7, Q\u0026A 17 and\n\n18, 2007-5 Internal Revenue Bulletin 395. The required minimum\n\ndistribution rules of Section 401(a)(9)(B)(other than clause iv\n\nthereof) of the Internal Revenue Code of 1986, as amended, apply to\n\nthe transferee IRA;\n\n4. \"Direct Rollover\" means a payment by the System to the\n\nEligible Retirement Plan specified by the Distributee or, in the\n\ncase of an automatic rollover, the individual retirement plan that\n\nthe State Board designates; and\n\n5. \"Mandatory Distribution\" means a distribution that is an\n\nEligible Rollover Distribution subject to Section 401(a)(31) of the\n\nInternal Revenue Code of 1986, as amended, and is made without the\n\nmember's consent to a member before the member attains the later of\ned by the Distributee or, in the\n\ncase of an automatic rollover, the individual retirement plan that\n\nthe State Board designates; and\n\n5. \"Mandatory Distribution\" means a distribution that is an\n\nEligible Rollover Distribution subject to Section 401(a)(31) of the\n\nInternal Revenue Code of 1986, as amended, and is made without the\n\nmember's consent to a member before the member attains the later of\n\nage sixty-two (62) or the member's normal retirement date. A\n\ndistribution to a surviving spouse, alternate payee, or a\n\ndistribution made upon a member's death is not a Mandatory\n\nDistribution for purposes of the automatic rollover requirements of\n\nSection 401(a)(31)(B) of the Internal Revenue Code of 1986, as\n\namended.\n\nC. At least thirty (30) days before and, effective for years\n\nbeginning after December 31, 2006, not more than one hundred eighty\n\n(180) days before the date of distribution, the Distributee (other\n\nthan a nonspouse designated beneficiary prior to July 1, 2010) must\n\nbe provided with a notice of rights which satisfies Section 402(f)\n\nof the Internal Revenue Code of 1986, as amended, as to rollover\n\noptions and tax effects. Such distribution may commence less than\n\nthirty (30) days after the notice is given, provided that:\n\n1. The State Board clearly informs the Distributee that the\n\nDistributee has a right to a period of at least thirty (30) days\n\nafter receiving the notice to consider the decision of whether or\n\nnot to elect a distribution; and\n\n2. The Distributee, after receiving the notice, affirmatively\n\nelects a distribution.\n\nD. For distributions made after December 31, 2006, but prior to\n\nJuly 1, 2010, a distribution with respect to a nonspouse designated\n\nbeneficiary shall be made in accordance with Notice 2007-7, Q\u0026A 15,\n\n2007-5 Internal Revenue Bulletin 395. Effective for plan years\n\nbeginning after December 31, 2009, a distribution with respect to a\n\nnonspouse designated beneficiary shall be subject to Sections\n\n401(a)(31), 402(f) and 3405(c) of the Internal Revenue Code of 1986,\n\nas amended.\n\nE. Effective for distributions after December 31, 2014, the\n\nguidance under IRS Notice 2014-54 shall be followed for purposes of\n\ndetermining the portion of a disbursement of benefits from the\n\nSystem to a Distributee that is not includable in gross income under\n\nSection 72 of the Internal Revenue Code of 1986, as amended.\n\nF. In the event of a Mandatory Distribution greater than One\n\nThousand Dollars ($1,000.00) made on or after June 28, 2018, if the\n\nmember does not elect to have such distribution paid directly to an\n\nEligible Retirement Plan specified by the member in a Direct\n\nRollover or to receive the distribution directly, then the State\n\nBoard shall pay the distribution in a Direct Rollover to an\n\nindividual retirement plan designated by the State Board. For\n\npurposes of determining whether a Mandatory Distribution is greater\n\nthan One Thousand Dollars ($1,000.00), the portion of the member's\n\ndistribution attributable to any rollover contribution is included.","path":["OK Code","Title 11"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os11.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"e3441d9e047609065ce44d6ea725ec956ae4915195c846e3b07598eafcdea542","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-11-11-49-106.2","next":"us-ok/okla.-stat.-tit.-11-11-49-106.4"},"notice":"GroundRules: Original legal text. Not legal advice."}