[Filed December 1, 2020, 10:02 a.m., effective January 1, 2021]
Effective Date of Rule: Thirty-one days after filing.
Purpose: To clarify eligibility to rollover funds from another source into a deferred compensation program account.
Citation of Rules Affected by this Order: Amending WAC 415-501-415.
Statutory Authority for Adoption: RCW 41.50.050
Adopted under notice filed as WSR 20-21-048 on October 13, 2020.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.
Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: December 1, 2020.
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.