HB 1002 Summary

• State Board of the Oklahoma Firefighters Pension and Retirement System must develop procedures and require information to determine if potential rollover contributions are valid under Internal Revenue Service guidelines (Section 1.401(a)(31)-1, Q&A-14(b)(2)).

• Eligible Rollover Distributions are permitted for members, surviving spouses, alternate payees, and nonspouse designated beneficiaries to transfer funds directly to Eligible Retirement Plans, including IRAs, 403(b) annuity contracts, and Roth IRAs under specified conditions.

• After-tax member contributions may be transferred to individual retirement accounts (January 1, 2002 through December 31, 2006) or to qualified trusts, annuity contracts, or Roth IRAs (on or after January 1, 2007).

• Distributees must receive notice of rollover rights and tax effects at least 30 days before distribution (but not more than 180 days before, effective after December 31, 2006), and may elect a distribution less than 30 days after notice if they affirmatively consent.

• For distributions after December 31, 2014, the Board shall follow IRS Notice 2014-54 guidance to determine the nontaxable portion of benefit disbursements under Section 72 of the Internal Revenue Code.