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24-7-719. Rollover of distributions — Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-719. Rollover of distributions — Definitions.
(a) As used in this section:
(1) “Direct rollover” means a payment by the Arkansas Teacher Retirement System to the eligible retirement plan specified by the distributee;
(2)(A) “Distributee” includes a member or former member.
(B) The member's or former member's surviving spouse and the member's or former member's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in the Internal Revenue Code, 26 U.S.C. § 414(p), as it existed on January 1, 2011, are distributees with regard to the interest of the spouse or former spouse;
(3)(A) “Eligible retirement plan” means an eligible plan under the Internal Revenue Code, 26 U.S.C. § 457(b), as it existed on January 1, 2011, that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into such a plan from the Arkansas Teacher Retirement System individual retirement account described in the Internal Revenue Code, 26 U.S.C. § 408(a), as it existed on January 1, 2011, and an individual retirement annuity described in the Internal Revenue Code, 26 U.S.C. § 408(b), as it existed on January 1, 2011, an annuity plan described in the Internal Revenue Code, 26 U.S.C. § 403(a), as it existed on January 1, 2011, an annuity contract described in the Internal Revenue Code, 26 U.S.C. § 403(b), as it existed on January 1, 2011, or a qualified plan described in the Internal Revenue Code, 26 U.S.C. § 401(a), as it existed on January 1, 2011, that accepts the distributee's eligible rollover distribution.
(B) The definition of “eligible retirement plan” shall also apply in the case of distribu
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-719
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Stable record: arkansas_code:legal_authorities:24-7-719
Source file: gov.ar.code.title.24.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 2500c1f5385437747858a5bc86323ba9b9447a09b912bfe549ae8f2539f702c4
Source location: content.xml paragraph 7300
Stored source content
24-7-719. Rollover of distributions — Definitions.
(a) As used in this section:
(1) “Direct rollover” means a payment by the Arkansas Teacher Retirement System to the eligible retirement plan specified by the distributee;
(2)(A) “Distributee” includes a member or former member.
(B) The member's or former member's surviving spouse and the member's or former member's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in the Internal Revenue Code, 26 U.S.C. § 414(p), as it existed on January 1, 2011, are distributees with regard to the interest of the spouse or former spouse;
(3)(A) “Eligible retirement plan” means an eligible plan under the Internal Revenue Code, 26 U.S.C. § 457(b), as it existed on January 1, 2011, that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into such a plan from the Arkansas Teacher Retirement System individual retirement account described in the Internal Revenue Code, 26 U.S.C. § 408(a), as it existed on January 1, 2011, and an individual retirement annuity described in the Internal Revenue Code, 26 U.S.C. § 408(b), as it existed on January 1, 2011, an annuity plan described in the Internal Revenue Code, 26 U.S.C. § 403(a), as it existed on January 1, 2011, an annuity contract described in the Internal Revenue Code, 26 U.S.C. § 403(b), as it existed on January 1, 2011, or a qualified plan described in the Internal Revenue Code, 26 U.S.C. § 401(a), as it existed on January 1, 2011, that accepts the distributee's eligible rollover distribution.
(B) The definition of “eligible retirement plan” shall also apply in the case of distribution to a surviving spouse or to a spouse or former spouse who is the alternate payee under a qualified domestic relation order, as defined in the Internal Revenue Code, 26 U.S.C. § 414(p), as it existed on January 1, 2011; and
(4)(A) “Eligible rollover distribution” means any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include:
(i) Any distribution that is one of a series of substantially equal periodic payments, not less frequently than annually, made for:
(a) The life or life expectancy of the distributee;
(b) The joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary; or
(c) A specified period of ten (10) years or more;
(ii) Any distribution to the extent such a distribution is required under the Internal Revenue Code, 26 U.S.C. § 401(a)(9), as it existed on January 1, 2011;
(iii) Any hardship distribution;
(iv) The portion of any other distribution or distributions that are not includible in gross income; and
(v) Any other distribution that is reasonably expected to total less than two hundred dollars ($200) during a year.
(B) A portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such a portion may be transferred only to an individual retirement account or annuity described in the Internal Revenue Code, 26 U.S.C. § 408(a) - (b), as it existed on January 1, 2011, or to a qualified defined contribution plan described in the Internal Revenue Code, 26 U.S.C. § 401(a), or 26 U.S.C. § 403(a), as it existed on January 1, 2011, that agrees to separately account for amounts so transferred, including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible.
(b)(1)(A) A distributee or other eligible beneficiary receiving a distribution from the system may direct to have any portion of an eligible rollover distribution that is five hundred dollars ($500) or more paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(B) The distribution under subdivision (b)(1)(A) of this section may be made:
(i) Despite any provision of this chapter that would otherwise limit a distributee's election under this section; and
(ii) At the time and in the manner prescribed by the system.
(C) The election under subdivision (b)(1)(A) of this section shall not be allowed for an eligible rollover distribution less than five hundred dollars ($500).
(2) The amount under subdivision (b)(1)(A) of this section shall be paid to the trustee of the eligible retirement plan.
(3) Effective July 1, 2010, an eligible rollover distribution to a beneficiary who is not the surviving spouse of a member may be directed as provided under 26 U.S.C. § 402(c)(11) to a trustee-to-trustee transfer to an individual retirement account described in 26 U.S.C. § 408(a) or to an individual retirement annuity described in 26 U.S.C. § 408(b).
(c) Subsection (b) of this section applies to distributions made under §§ 24-7-709 — 24-7-711, 24-7-716 [repealed], 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.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirements for qualification** A trust created or organized in the United States and forming part of a stock bonus, pension, or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries shall constitute a qualified trust under this section—
(1) if contributions are made to the trust by such employer, or employees, or both, or by another employer who is entitled to deduct his contributions under section 404(a)(3)(B) (relating to deduction for contributions to profit-sharing and stock bonus plans), or by a charitable remainder trust pursuant to a qualified gratuitous transfer (as defined in section 664(g)(1)), for the purpose of distributing to such employees or their beneficiaries the corpus and income of the fund accumulated by the trust in accordance with such plan;
(2) if under the trust instrument it is impossible, at any time prior to the satisfaction of all liabilities with respect to employees and their beneficiaries under the trust, for any part of the corpus or income to be (within the taxable year or thereafter) used for, or diverted to, purposes other than for the exclusive benefit of his employees or their beneficiaries (but this paragraph shall not be construed, in the case of a multiemployer plan, to prohibit the return of a contribution within 6 months after the plan administrator determines that the contribution was made by a mistake of fact or law (other than a mistake relating to whether the plan is described in section 401(a) or the trust which is part of such plan is exempt from taxation under section 501(a), or the return of any withdrawal liability payment determined to be an overpayment within 6 months of such determination));
(3) if the plan of which such trust is a part satisfies the requireme
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Federal law — U.S. Code and appendices · legal_authorities
Page 1178
TITLE 26—INTERNAL REVENUE CODE
§ 401
1983—Pub. L. 98–21, title III, § 321(e)(2)(D)(ii), Apr. 20,
1983, 97 Stat. 120, substituted ‘‘Employees of foreign af-
filiates covered by section 3121(l) agreements’’ for ‘‘Cer-
tain employees of foreign subsidiaries’’ in item 406.
1980—Pub. L. 96–603, § 2(d)(1), Dec. 28, 1980, 94 Stat.
3510, added item 404A.
Pub. L. 96–222, title I, § 101(a)(7)(L)(v)(VIII), Apr. 1,
1980, 94 Stat. 200, substituted ‘‘tax credit employee
stock ownership plans’’ for ‘‘ESOPS’’ in item 409A.
1978—Pub. L. 95–600, title I, § 141(f)(8), Nov. 6, 1978, 92
Stat. 2795, added item 409A.
1974—Pub. L. 93–406, title II, § 1016(b)(1), Sept. 2, 1974,
88 Stat. 932, inserted heading ‘‘Subpart A—General
Rule’’ and added analysis of subparts.
Pub. L. 93–406, title II, § 2002(h)(2), Sept. 2, 1974, 88
Stat. 970, added items 408 and 409.
1964—Pub. L. 88–272, title II, § 220(c)(1), Feb. 26, 1964, 78
Stat. 62, added items 406 and 407.
1962—Pub. L. 87–792, § 5(b), Oct. 10, 1962, 76 Stat. 827,
added item 405.
§ 401. Qualified pension, profit-sharing, and stock
bonus plans
(a) Requirements for qualification
A trust created or organized in the United
States and forming part of a stock bonus, pen-
sion, or profit-sharing plan of an employer for
the exclusive benefit of his employees or their
beneficiaries shall constitute a qualified trust
under this section—
(1) if contributions are made to the trust by
such employer, or employees, or both, or by
another employer who is entitled to deduct his
contributions under section 404(a)(3)(B) (relat-
ing to deduction for contributions to profit-
sharing and stock bonus plans), or by a chari-
table remainder trust pursuant to a qualified
gratuitous transfer (as defined in section
664(g)(1)), for the p
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Taxability of beneficiary under a qualified annuity plan**
(1) **Distributee taxable under section 72** — If an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section), the amount actually distributed to any distributee under the contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities).
(2) **Special rule for health and long-term care insurance** — To the extent provided in section 402(l), paragraph (1) shall not apply to the amount distributed under the contract which is otherwise includible in gross income under this subsection.
(3) **Self-employed individuals** — For purposes of this subsection, the term “employee” includes an individual who is an employee within the meaning of section 401(c)(1), and the employer of such individual is the person treated as his employer under section 401(c)(4).
(4) **Rollover amounts**
(A) *General rule* — If—
(i) any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in an eligible rollover distribution (within the meaning of section 402(c)(4)),
(ii) the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan, and
(iii) in the case of a distribution of property other than money, the amount so transferred consists of the property distributed,
(B) *Certain rules made applicable* — The rules of paragraphs (2) through (7) and (11) and (9) of section 402(c) and section 402(f) shall apply for purposes of subparagraph (A).
(5) **Direct trustee-to-trustee transfer** — A
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Federal law — U.S. Code and appendices · legal_authorities
Page 1267
TITLE 26—INTERNAL REVENUE CODE
§ 403
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2022 AMENDMENT
Amendment by section 127 of Pub. L. 117–328 applica-
ble to plan years beginning after Dec. 31, 2023, see sec-
tion 127(g) of Pub. L. 117–328, set out as a note under
section 72 of this title.
Pub. L. 117–328, div. T, title III, § 325(b), Dec. 29, 2022,
136 Stat. 5359, provided that:
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the amendment made by this section [amending this
section] shall apply to taxable years beginning after
December 31, 2023.
‘‘(2) SPECIAL
RULE.—The amendment made by this
section shall not apply to distributions which are re-
quired with respect to years beginning before January
1, 2024, but are permitted to be paid on or after such
date.’’
Pub. L. 117–328, div. T, title VI, § 604(e), Dec. 29, 2022,
136 Stat. 5393, provided that: ‘‘The amendments made
by this section [amending this section] shall apply to
contributions made after the date of the enactment of
this Act [Dec. 29, 2022].’’
EFFECTIVE DATE OF 2013 AMENDMENT
Pub. L. 112–240, title IX, § 902(b), Jan. 2, 2013, 126 Stat.
2371, provided that: ‘‘The amendment made by this sec-
tion [amending this section] shall apply to transfers
after December 31, 2012, in taxable years ending after
such date.’’
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–240, title II, § 2111(c), Sept. 27, 2010, 124
Stat. 2566, provided that: ‘‘The amendments made by
this section [amending this section] shall apply to tax-
able years beginning after December 31, 2010.’’
Pub. L. 111–240, title II, § 2112(b), Sept. 27, 2010, 124
Stat. 2566, provided that: ‘‘The amendments made by
this section [amending this section] shall apply to dis-
tributions after the date of the en
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Individual retirement account** For purposes of this section, the term “individual retirement account” means a trust created or organized in the United States for the exclusive benefit of an individual or his beneficiaries, but only if the written governing instrument creating the trust meets the following requirements:
(1) Except in the case of a rollover contribution described in subsection (d)(3) or in section 402(c), 403(a)(4), 403(b)(8), or 457(e)(16), no contribution will be accepted unless it is in cash, and contributions will not be accepted for the taxable year on behalf of any individual in excess of the amount in effect for such taxable year under section 219(b)(1)(A).
(2) The trustee is a bank (as defined in subsection (n)) or such other person who demonstrates to the satisfaction of the Secretary that the manner in which such other person will administer the trust will be consistent with the requirements of this section.
(3) No part of the trust funds will be invested in life insurance contracts.
(4) The interest of an individual in the balance in his account is nonforfeitable.
(5) The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund.
(6) Under regulations prescribed by the Secretary, rules similar to the rules of section 401(a)(9) and the incidental death benefit requirements of section 401(a) shall apply to the distribution of the entire interest of an individual for whose benefit the trust is maintained.
**(b) Individual retirement annuity** For purposes of this section, the term “individual retirement annuity” means an annuity contract, or an endowment contract (as determined under regulations prescribed by the Secretary), issued by an insurance company which meets the fo
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 408
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Federal law — U.S. Code and appendices · legal_authorities
Page 1306
TITLE 26—INTERNAL REVENUE CODE
§ 408
the provision of the Technical and Miscellaneous Rev-
enue Act of 1988, Pub. L. 100–647, to which such amend-
ment relates, see section 7817 of Pub. L. 101–239, set out
as a note under section 1 of this title.
Amendment by section 7831(f) of Pub. L. 101–239 effec-
tive as if included in the provision of the Tax Reform
Act of 1986, Pub. L. 99–514, to which such amendment
relates, see section 7831(g) of Pub. L. 101–239, set out as
a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100–647 effective, except as
otherwise provided, as if included in the provision of
the Tax Reform Act of 1986, Pub. L. 99–514, to which
such amendment relates, see section 1019(a) of Pub. L.
100–647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 1112(d)(3) of Pub. L. 99–514 ap-
plicable to plan years beginning after Dec. 31, 1988, with
special rule regarding collective bargaining agreements
ratified before Mar. 1, 1986, and with provision for waiv-
er of excise tax on reversions, see section 1112(e) of Pub.
L. 99–514, set out as a note under section 401 of this
title.
Amendment by section 1114(b)(9)(B), (C) of Pub. L.
99–514 applicable to years beginning after Dec. 31, 1988,
see section 1114(c)(3) of Pub. L. 99–514, set out as a note
under section 414 of this title.
Amendment by section 1852(e)(2)(D) of Pub. L. 99–514
applicable to transfers after Oct. 22, 1986, see section
1852(e)(2)(E) of Pub. L. 99–514, set out as a note under
section 406 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 applicable to obliga-
tions issued after Dec. 31, 1983, see section 491(f)(1) of
Pub. L. 98–369, set out as a
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 408
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Service for predecessor employer** For purposes of this part—
(1) in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and
(2) in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary, be treated as service for the employer.
**(b) Employees of controlled group of corporations**
(1) **In general** — For purposes of sections 401, 408(k), 408(p), 410, 411, 415, and 416, all employees of all corporations which are members of a controlled group of corporations (within the meaning of section 1563(a), determined without regard to section 1563(a)(4) and (e)(3)(C)) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the applicable limitations provided by section 404(a) shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary.
(2) **Special rules for applying family attribution** — For purposes of applying the attribution rules under section 1563 with respect to paragraph (1), the following rules apply:
(A) Community property laws shall be disregarded for purposes of determining ownership.
(B) Except as provided by the Secretary, stock of an individual not attributed under section 1563(e)(5) to such individual’s spouse shall not be attributed to such spouse by reason of the combined application of paragraphs (1) and (6)(A) of section 1563(e).
(C) Except as provided by the Secretary, in the case of stock in different corporations that is attribut
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 414
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Federal law — U.S. Code and appendices · legal_authorities
Page 1394
TITLE 26—INTERNAL REVENUE CODE
§ 414
model plan language similar to model plan language
published under section 413(e)(5) of such Code.
‘‘(3) EDUCATIONAL
OUTREACH
TO
EMPLOYERS
EXEMPT
FROM TAX.—The Secretary of the Treasury (or the Sec-
retary’s delegate), in consultation with the Secretary
of Labor, shall provide education and outreach to in-
crease awareness to employers described in section
501(c)(3) of the Internal Revenue Code of 1986, and which
are exempt from tax under section 501(a) of such Code,
that multiple employer plans are subject to the Em-
ployee Retirement Income Security Act of 1974 and
that such employer is a plan sponsor with respect to its
employees participating in the multiple employer plan
and, as such, has certain fiduciary duties with respect
to the plan and to its employees.’’
§ 414. Definitions and special rules
(a) Service for predecessor employer
For purposes of this part—
(1) in any case in which the employer main-
tains a plan of a predecessor employer, service
for such predecessor shall be treated as service
for the employer, and
(2) in any case in which the employer main-
tains a plan which is not the plan maintained
by a predecessor employer, service for such
predecessor shall, to the extent provided in
regulations prescribed by the Secretary, be
treated as service for the employer.
(b) Employees of controlled group of corpora-
tions
(1) In general
For purposes of sections 401, 408(k), 408(p),
410, 411, 415, and 416, all employees of all cor-
porations which are members of a controlled
group of corporations (within the meaning of
section 1563(a), determined without regard to
section 1563(a)(4) and (e)(3)(C)) shall be treated
as employed by a single employer. With re-
spect to a plan adopted by more
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 414
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Year of inclusion in gross income**
(1) **In general** — Any amount of compensation deferred under an eligible deferred compensation plan, and any income attributable to the amounts so deferred, shall be includible in gross income only for the taxable year in which such compensation or other income—
(A) is paid to the participant or other beneficiary, in the case of a plan of an eligible employer described in subsection (e)(1)(A), and
(B) is paid or otherwise made available to the participant or other beneficiary, in the case of a plan of an eligible employer described in subsection (e)(1)(B).
(2) **Special rule for rollover amounts** — To the extent provided in section 72(t)(9), section 72(t) shall apply to any amount includible in gross income under this subsection.
(3) **Special rule for health and long-term care insurance** — In the case of a plan of an eligible employer described in subsection (e)(1)(A), to the extent provided in section 402(l), paragraph (1) shall not apply to amounts otherwise includible in gross income under this subsection.
**(b) Eligible deferred compensation plan defined** For purposes of this section, the term “eligible deferred compensation plan” means a plan established and maintained by an eligible employer—
(1) in which only individuals who perform service for the employer may be participants,
(2) which provides that (except as provided in paragraph (3)) the maximum amount which may be deferred under the plan for the taxable year (other than rollover amounts) shall not exceed the lesser of—
(A) the applicable dollar amount, or
(B) 100 percent of the participant’s includible compensation,
(3) which may provide that, for 1 or more of the participant’s last 3 taxable years ending before he attains normal retirement
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Federal law — U.S. Code and appendices · legal_authorities
Page 1585
TITLE 26—INTERNAL REVENUE CODE
§ 457
(d) Transitional rule
(1) Amount includible in gross income for elec-
tion years
If a taxpayer makes an election under this
section with respect to prepaid dues income,
such taxpayer shall include in gross income,
for each taxable year to which such election
applies, not only that portion of prepaid dues
income received in such year otherwise includ-
ible in gross income for such year under this
section, but shall also include in gross income
for such year an additional amount equal to
the amount of prepaid dues income received in
the 3 taxable years preceding the first taxable
year to which such election applies which
would have been included in gross income in
the taxable year had the election been effec-
tive 3 years earlier.
(2) Deductions of amounts included in income
more than once
A taxpayer who makes an election with re-
spect to prepaid dues income, and who in-
cludes in gross income for any taxable year to
which the election applies an additional
amount computed under paragraph (1), shall
be permitted to deduct, for such taxable year
and for each of the 4 succeeding taxable years,
an amount equal to one-fifth of such addi-
tional amount, but only to the extent that
such additional amount was also included in
the taxpayer’s gross income during any of the
3 taxable years preceding the first taxable
year to which such election applies.
(e) Definitions
For purposes of this section—
(1) Prepaid dues income
The term ‘‘prepaid dues income’’ means any
amount (includible in gross income) which is
received by a membership organization in con-
nection with, and is directly attributable to, a
liability to render services or make available
membership privileges over a period of time
which exte
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 457
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