Election to rollover to an eligible retirement plan
Seattle Mun. Code § 4.36.670
in effect4.36.670 - Election to rollover to an eligible retirement plan
A. This Section 4.36.670 applies notwithstanding any contrary provision that would otherwise limit a distributee's ability to make a rollover election. A distributee may elect, at the time and in the manner prescribed under this Chapter 4.36, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
B. The following definitions apply to this Section 4.36.670:
1. "Direct rollover" means a payment under this Chapter 4.36 to the eligible retirement plan specified by the distributee.
2. "Distributee" means an employee or former employee. It also includes the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code § 414(p), are distributees with regard to the interest of the spouse or former spouse.
3. "Eligible retirement plan" means an individual retirement account described in Code § 408(a), an individual retirement annuity described in Code § 408(b), an annuity plan described in Code § 403(a), a qualified trust described in Code § 401(a), an arrangement described in Code § 403(b), an eligible governmental deferred compensation plan described in Code § 457(b), or for distributions made after December 31, 2007, a Roth IRA described in Code § 408A(b).
4. "Eligible rollover distribution" means any distribution of all or any portion of the member's benefits under this chapter, except: (a) any distribution which is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the member or the joint lives (or joint life expectancies) of the member and the member's Designated Beneficiary, or for a specified period of ten years or more; (b) any distribution to the extent required under Code § 401(a)(9); (c) the portion of any distribution which is not includible in gross income; (d) any hardship distribution; (e) a corrective distribution; (f) a deemed distribution resulting from a defaulted member loan which is not also an offset distribution; (g) any other distributions described in Treas. Reg. § 1.402(c)-2; and (h) as to a direct rollover, any distributions during that calendar year that are reasonably expected to total less than $200.
5. "Individual retirement plan" means an individual retirement account ("IRA") described in Code § 408(a) or an individual retirement annuity described in Code § 408(b), and, as the context requires, includes a Roth IRA or a Roth individual retirement annuity.
C. Non-spouse designated beneficiary direct rollover. For distributions made after December 31, 2006, a non-spouse designated beneficiary (including a trust which qualifies as a designated beneficiary), may, by direct rollover, roll over an eligible rollover distribution to an eligible retirement plan; provided that for this purpose, an eligible retirement plan is an individual retirement plan that the non-spouse designated beneficiary establishes for purposes of receiving the distribution and which is treated as an inherited IRA under Code § 408(d)(3)(C). If a non-spouse designated beneficiary receives a distribution from the plan, the distribution is not eligible for a 60-day rollover.
D. Certain requirements not applicable before 2010. Although a non-spouse designated beneficiary may roll over directly a distribution as provided in this Section 4.36.670, any distribution made prior to January 1, 2010, is not subject to the direct rollover requirements of Code § 401(a)(31) (including Code § 401(a)(31)(B)), the notice requirements of Code § 402(f), or the mandatory withholding requirements of Code § 3405(c)).
E. Effective January 1, 2006, in the event of a mandatory lump sum distribution in an amount greater than $1,000, if the participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the participant in a direct rollover or to receive the distribution directly, then such distribution shall be paid in a direct rollover to an individual retirement plan designated by the Board.
(Ord. 125109, § 47, 2016; Ord. 124574, § 27, 2014; Ord. 124392, § 2, 2013; Ord. 122414, § 1, 2007; Ord. 117978 § 2, 1995.)
Source: City of Seattle, Seattle Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT4PE_CH4.36CIEMRESY_4.36.670ELROELREPLFetched: 11/1/2026