Section 5. Rollovers from other plans

If provided by the employer in the adoption agreement, the plan will accept participant rollover contributions and/or direct rollovers of the types of contributions and from the types of plans specified in the adoption agreement.

Adoption Agreement Provisions:

Direct Rollovers: The plan will accept a direct rollover of an eligible rollover distribution from: (Check each that applies or none.)

( ) a qualified plan described in section 401(a) or 403(a) of the Code.

( ) an annuity contract described in section 403(b) of the Code.

( ) an eligible plan under section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.

(Choose one.)

( ) Including after-tax employee contributions from the plans or contracts checked above.

( ) Excluding after-tax employee contributions from the plans or contracts checked above.

(Choose one.)

( ) Including distributions from designated Roth accounts from the applicable plans or contracts checked above.

( ) Excluding distributions from designated Roth accounts from the applicable plans or contracts checked above.

In-Plan Roth Rollovers

( ) If checked, the plan will permit participants to make in-plan Roth rollovers.

Participant Rollover Contributions from Other Plans: The plan will accept a participant contribution of an eligible rollover distribution from: (Check each that applies or none.)

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( ) a qualified plan described in section 401(a) or 403(a) of the Code, excluding after-tax employee contributions.

( ) an annuity contract described in section 403(b) of the Code, excluding aftertax employee contributions.

Participant Rollover Contributions from IRAs:

The Plan: (Choose one.)

( ) will

( ) will not

accept a participant rollover contribution of the portion of a distribution from an individual retirement account or annuity described in section 408(a) or (b) of the Code that is eligible to be rolled over and would otherwise be includible in gross income.

(Note to reviewer: The SECURE 2.0 Act of 2022 added new IRC § 414(aa) to permit plan sponsors to amend a plan to account for benefit overpayments and to reduce future payments to the correct amount. The Act also added new IRC § 402(c)(12), which provides for continued eligible rollover treatment for (1) a benefit overpayment that had been rolled over if recoupment is not sought, or (2) the return of the distribution to the plan through a rollover distribution if recoupment is sought. Neither Code §§ 402(c)(12) nor 414(aa) are included on the 2023 Cumulative List, so sample plan language is not provided in this regard. However, sponsors may include provisions consistent with this statutory treatment.)

(Note to reviewer: After amendment by section 604(a) of the SECURE 2.0 Act of 2022, IRC §§ 402(c)(8)(B) and 402A(c)(3)(A) provide that if any portion of an eligible rollover distribution is attributable to payments or distributions from a designated Roth account, that portion is permitted to be rolled over only to another designated Roth account or to a Roth IRA. This includes a separate account that is established for designated Roth matching contributions or designated Roth nonelective contributions. See DC LRM #25 and CODA LRM IX.

Similarly, § 402A(c)(4)(B) requires an applicable retirement plan to include a qualified Roth contribution program in order for the plan to permit employees to make in-plan Roth rollovers. The sample plan language at Section 1.1 above is compliant for this purpose.)

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