Section 21-602 - Election of eligible rollover distribution. - Maryland Statutes

§ 21-602. Election of eligible rollover distribution.
 

(a)  In general.- Except as provided in subsections (b) and (c) of this section, a participant may elect on the form the Board of Trustees requires to have all or any part of an eligible rollover distribution paid to the eligible retirement plan in a direct rollover. 

(b)  Distribution to a designated beneficiary.-  

(1) Except as provided in paragraph (2) of this subsection, if an eligible rollover distribution is payable to the designated beneficiary of a member, former member, or retiree, the designated beneficiary may only elect to have all or any part of the eligible rollover distribution paid in a direct rollover to an individual retirement account or individual retirement annuity. 

(2) (i) A nonspouse designated beneficiary may roll over an eligible rollover distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution. 

(ii) An individual retirement account or individual retirement annuity established under this paragraph shall be treated as an inherited individual retirement account or annuity within the meaning of § 408(d)(3)(C) of the Internal Revenue Code. 

(c)  Supplemental plan participants.- A member who is eligible to participate in the plan administered by the supplemental plan under Title 35, Subtitle 5 of this article may elect to have all or any part of the eligible rollover distribution paid in a direct rollover to the plan in accordance with the regulations adopted by the supplemental plan. 
 

[An. Code 1957, art. 73B, § 1-602; 1994, ch. 6, § 2; 2007, ch. 329; 2009, ch. 561.]