{"data":{"id":"us-ok/okla.-stat.-tit.-47-47-2-305.1a","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 47, § 47-2-305.1A","heading":"Direct rollover of distribution - Definitions -","body":"Notice - Election.\n\nA. This section applies to distributions made on or after\n\nJanuary 1, 2002. Notwithstanding any provision of the System to the\n\ncontrary that would otherwise limit a Distributee's election\n\nhereunder, a Distributee, including a nonspouse designated\n\nbeneficiary, to the extent permitted under paragraph 3 of subsection\n\nB of this section, may elect, at the time and in the manner\n\nprescribed by the Board, to have any portion of an Eligible Rollover\n\nDistribution paid directly to an Eligible Retirement Plan specified\n\nby the Distributee in a Direct Rollover.\n\nB. As used in this section:\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 which are not includable in gross\n\nincome. However, such portion may be transferred only:\n\na. 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 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\nb. 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\n\nCode of 1986, as amended, and an eligible plan under Section 457(b)\ne 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 under Section 408A(c) of the Internal\n\nRevenue Code of 1986, as amended. Effective for distributions after\n\nDecember 18, 2015, an Eligible Retirement Plan includes a SIMPLE IRA\n\nin accordance with Section 408(p)(1)(B) of the Internal Revenue Code\n\nof 1986, as amended, for purposes of a rollover contribution to such\n\nSIMPLE IRA, but only if such rollover contribution is made after\n\nDecember 18, 2015, and only if such rollover contribution occurs\n\nafter the two-year period described in Section 72(t)(6) of the\n\nInternal Revenue Code of 1986, as amended;\n\n3. \"Distributee\" means an employee or former employee. In\n\naddition, the employee's or former employee's surviving spouse and\n\nthe employee's or former employee's spouse or former spouse who is\n\nthe alternate payee under a qualified domestic order, as defined in\n\nsubsection B of Section 2-303.3 of this title, are Distributees with\n\nregard to the interest of the spouse or the former spouse. A\n\nDistributee also includes the member's nonspouse designated\n\nbeneficiary (and certain trusts described in Section 402(c)(11)(B)\n\nof the Internal Revenue Code of 1986, as amended), pursuant to\n\nSection 401(a)(9)(E) of the Internal Revenue Code of 1986, as\n\namended, who may elect any portion of a payment to be made in a\n\nDirect Rollover only to an individual retirement account or annuity\n\n(other than an endowment contract) described in Section 408(a) or\n\n(b) of the Internal Revenue Code of 1986, as amended, (\"IRA\")\n\n(including, effective for distributions after December 18, 2015, a\n\nSIMPLE IRA, but only if such contribution occurs after the two-year\n\nperiod described in Code Section 72(t)(6) and is made in accordance\n\nwith the Protecting Americans from Tax Hikes Act of 2015), or,\n\neffective for distributions after December 31, 2007, to a Roth IRA,\n\nthat is established on behalf of such nonspouse designated\n\nbeneficiary for the purpose of receiving the distribution and that\n\nwill be treated as an inherited IRA pursuant to the provisions of\n\nSection 402(c)(11) of the Internal Revenue Code of 1986, as amended.\n\nAlso, in this case, the determination of any required minimum\n\ndistribution under Section 401(a)(9) of the Internal Revenue Code of\n\n1986, as amended, that is ineligible for rollover shall be made in\n\naccordance with Notice 2007-7, Q\u0026A 17 and 18, 2007-5 Internal\n\nRevenue Bulletin 395. The required minimum distribution rules of\n\nSection 401(a)(9)(B) (other than clause iv thereof) of the Internal\n\nRevenue Code of 1986, as amended, apply to the transferee IRA; and\n\n4. \"Direct Rollover\" means a payment by the System to the\n\nEligible Retirement Plan specified by the Distributee.\n\nC. At least thirty (30) days before and, effective for years\n\nbeginning after December 31, 2006, not more than one hundred eighty\nribution rules of\n\nSection 401(a)(9)(B) (other than clause iv thereof) of the Internal\n\nRevenue Code of 1986, as amended, apply to the transferee IRA; and\n\n4. \"Direct Rollover\" means a payment by the System to the\n\nEligible Retirement Plan specified by the Distributee.\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 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, for\n\npurposes of determining the portion of a disbursement of benefits\n\nfrom the System to a Distributee that is not includable in gross\n\nincome under Section 72 of the Internal Revenue Code of 1986, as\n\namended, the guidance under I.R.S. Notice 2014-54 shall be followed.","path":["OK Code","Title 47"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os47.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"63e33a2553a515e869679d280cae073246133fc9911547ddcc57894f5c444f95","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-47-47-2-305.12","next":"us-ok/okla.-stat.-tit.-47-47-2-305.1b"},"notice":"GroundRules: Original legal text. Not legal advice."}