Montana § 19-2-1011 - Limitations On Eligible Rollover Distributions

§ 19-2-1011. Limitations On Eligible Rollover Distributions

Limitations on eligible rollover distributions. (1) An eligible rollover distribution may not include: (a) any distribution that is one of a series of substantially equal periodic payments made at least annually for: (i) the life or the life expectancy of the distributee; (ii) the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary; or (iii) a specified period of 10 years or more; (b) any distribution to the extent the distribution is required under section 401(a)(9) of the Internal Revenue Code, 26 U.S.C. 401(a)(9); (c) the portion of any distribution that is not includable in gross income; or (d) any other distribution that is reasonably expected to total less than $200 during the year. (2) (a) Effective January 1, 2002, a portion of a distribution may not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includable in gross income. However, that portion may be transferred only to: (i) an individual retirement account or annuity described in section 408(a) or (b) of the Internal Revenue Code, 26 U.S.C. 408(a) or (b); (ii) a qualified defined contribution plan described in section 401(a) of the Internal Revenue Code, 26 U.S.C. 401(a); (iii) a qualified plan described in section 403(a) of the Internal Revenue Code, 26 U.S.C. 403(a); (iv) on or after January 1, 2007, a qualified defined benefit plan described in section 401(a) of the Internal Revenue Code, 26 U.S.C. 401(a); or (v) an annuity contract described in section 403(b) of the Internal Revenue Code, 26 U.S.C. 403(b). (b) The plans described in subsections (2)(a)(ii), (2)(a)(iv), and (2)(a)(v) must separately account for amounts that are transferred and earnings on those amounts, including separately accounting for the portion of the distribution that is includable in gross income and the portion of the distribution that is not includable.