Expands Portability

The following changes allow members to move their retirement funds to their new employer's plan:

  • Permits rollovers between various types of defined contribution plans such as 401(k), 403(b), and 457 plans.

  • Allows IRA amounts to be rolled over to a qualified plan, a 403(b) plan or a 457 plan. Also permits surviving spouse to roll over distributions to a qualified plan, 403(b) plan or 457 plan.

  • Gives the IRS the authority to extend the 60-day rollover period where failure to comply is due to casualty, disaster, or other events beyond the reasonable control of the member.

  • Allows after-tax employee contributions to be rolloed over to another qualified plan or to an IRA.

  • Eliminates the same desk rule that restricts a plan's ability to distributeelective deferral contributions when there is a severance from employment rather than a separation from service.