DIRECT ROLLOVERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS Clause Samples
The "Direct Rollovers of Eligible Rollover Distributions" clause establishes the process by which certain distributions from a retirement plan can be transferred directly to another eligible retirement plan or IRA without the participant taking possession of the funds. In practice, this means that when an employee receives a distribution that qualifies as an eligible rollover, the plan administrator can transfer the amount directly to another qualified plan or account at the participant's request, thereby avoiding mandatory tax withholding and potential early withdrawal penalties. This clause primarily serves to facilitate the smooth and tax-efficient movement of retirement assets, helping participants preserve their retirement savings and comply with IRS rollover rules.
DIRECT ROLLOVERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS. A. Direct Rollover Option This Section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution that is equal to at least $500 paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
DIRECT ROLLOVERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Recipient's election under this Section 5.08 of the Plan, a Recipient may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover Distribution that is equal to at least $500 (or such lesser amount if the Plan Administrator permits in a uniform and nondiscriminatory manner) paid directly to an Eligible Retirement Plan (including an individual retirement account described in Section 408(a) or 408(b) of the Code provided by the Prototype Sponsor) specified by the Recipient in a Direct Rollover.
DIRECT ROLLOVERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Recipient’s election under this Plan Section 5.01(D)(1)(b), a Recipient may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover Distribution that is equal to at least $500 (or such lesser amount if the Plan Administrator permits in a uniform and nondiscriminatory manner) paid directly to an Eligible Retirement Plan specified by the Recipient in a Direct Rollover.