Section 1. Notwithstanding any provision of the plan to the contrary that would

otherwise limit a distributee’s election under this part, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have all or any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover, provided the t hat each portion is equal to at least $500. If an eligible rollover distribution is less than $500, a distributee may not make the election described in the preceding sentence to roll over only a portion of the eligible rollover distribution.

(Note to reviewer: A sponsor may also include a provision offering direct trustee-to- trustee transfers of Lifetime Income Investments if the plan is later amended to eliminate those investment options. See LRM 69, Lifetime Income Investment Distributions.)

(Note to reviewer: For plan years beginning after December 31, 2009, a plan is required to offer a direct rollover of a distribution to a nonspouse beneficiary. For earlier plan years, a plan was permitted but not required to offer a direct rollover of a distribution made after December 31, 2006, to a nonspouse beneficiary.)

1.1. In-Plan Roth Rollovers.

If elected by the employer in the adoption agreement, an eligible rollover distribution from a participant’s account under the plan other than a designated Roth account may be transferred to the participant’s designated Roth account under the plan. The plan will maintain such records as are necessary for the proper reporting of in-plan Roth rollovers.

(Note to reviewer: Beginning in 2013, IRC § 402A(c)(4)(E), as amended by § 902 of the American Taxpayer Relief Act of 2012, Pub. L. 112–240, provides that a plan may allow in-plan Roth rollovers of amounts that are not otherwise distributable. Such a change requires a discretionary amendment for the year implemented. The

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amendment’s effective date must be the date the plan first allows the designated Roth account transactions permitted by the amendment. The deadline to adopt the amendment to allow such a rollover was extended to the later of the last day of the first plan year in which the amendment is effective or December 31, 2014. S ee Notice 2013-74. Plan provisions or adoption agreement elections establishing this provision must provide for an appropriate effective date.)