WSR 20-21-048
[Filed October 13, 2020, 3:30 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 20-16-098.
Title of Rule and Other Identifying Information: Deferred compensation program, WAC 415-501-415 May I move funds into the plan from an eligible retirement plan?
Hearing Location(s): On November 30, 2020, at 10:30 a.m. The hearing will be conducted by telephone conference only: 360-407-3830 or 855-682-0796 (toll free). Conference ID: 101895.
Date of Intended Adoption: December 1, 2020.
Submit Written Comments to: Jilene Siegel, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, email, by November 30, 2020, 9:00 a.m.
Assistance for Persons with Disabilities: Contact Jilene Siegel, phone 360-664-7291, TTY 711, email, by November 19, 2020.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To clarify eligibility to rollover funds from another source into a deferred compensation program account.
Reasons Supporting Proposal: This amendment will make it easier for an individual to determine if they are eligible to roll funds into a deferred compensation program account.
Statutory Authority for Adoption: RCW 41.50.780.
Statute Being Implemented: RCW 41.50.780.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of retirement systems, governmental.
Name of Agency Personnel Responsible for Implementation: Seth Miller, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, 360-664-7304.
A school district fiscal impact statement is not required under RCW 28A.305.135.
A cost-benefit analysis is not required under RCW 34.05.328. RCW 34.05.328 (5)(a)(i) does not apply to this proposed rule and is not voluntarily made applicable by the agency.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025(3) as the rules relate only to internal governmental operations that are not subject to violation by a nongovernment party.
October 13, 2020
Jilene Siegel
Rules Coordinator
AMENDATORY SECTION(Amending WSR 04-22-053, filed 10/29/04, effective 11/29/04)
WAC 415-501-415May I move funds into the plan from an eligible retirement plan?
(1) Rollover.If you established your deferred compensation account through your own employment with a participating employer, you may roll pretax contributions into the plan from an individual retirement account (IRA) or from another eligible retirement plan. If your account was established as a beneficiary following the original account owner's death, or as a result of a domestic relations order as described in WAC 415-501-495, you are not eligible to roll additional funds into the account.
(a) The plan will keep a separate accounting of all funds rolled into the plan.
(b) Distributions of money rolled into the plan may be subject to an additional ten percent tax on early distributions.
(2) Plan-to-plan transfer. You may transfer money into the plan from another eligible governmental Section 457(b) plan maintained by a political subdivision, subject to the following conditions:
(a) The political subdivision also participates in DCP;
(b) The transferor plan allows direct plan-to-plan transfers; and
(c) You are employed by the political subdivision at the time of the transfer.
(3) Rollover/transfer application. You must complete the appropriate form to transfer or roll money ((over)) into your deferred compensation account. Forms are available through the department or on its website.