Direct trustee-to-trustee transfer by nonspouse beneficiary.
Oklahoma City Municipal Code § 40-87
in effect§ 40-87. - Direct trustee-to-trustee transfer by nonspouse beneficiary.
(a) An individual who has been designated, pursuant to Code Section 401(a)(9)(E), as the beneficiary of a deceased Participant and who is not the surviving spouse of the Participant, may elect, in accordance with Code Section 402(c)(11), to have a direct trustee-to-trustee transfer of any portion of such beneficiary's distribution from the System after December 31, 2006, made to an individual retirement account or individual retirement annuity (other than an endowment contract) described in Code Section 408(a) or (b) ("IRA") (including, effective for distributions after December 18, 2015, a SIMPLE IRA but only if such contribution occurs after the two-year period described in Code Section 72(t)(6) and is made in accordance with the Protecting Americans from Tax Hikes Act of 2015) that is established on behalf of such designated individual. If such transfer is made, then:
(1) For distributions made after December 31, 2006, but prior to January 1, 2010, the transfer is treated as an eligible rollover distribution for purposes of Code Section 402(c)(11). Effective January 1, 2010, the transfer is treated as an eligible rollover distribution; and
(2) the transferee IRA is treated as an inherited individual retirement account or an inherited individual retirement annuity (within the meaning of Code Section 408(d)(3)(c)) and that must be titled in the name of the deceased Participant, for the benefit of the beneficiary; and
(3) the required minimum distribution rules of Code Section 401(a)(9)(B) (other than clause iv thereof) apply to the transferee IRA.
Furthermore, for distributions after December 31, 2007, a nonspouse designated beneficiary (as described in and in accordance with Code Section 402(c)(11)) may directly roll over a distribution to a Roth IRA, subject to any limitations described in Code Section 408A(c).
(b) A trust maintained for the benefit of one or more designated beneficiaries shall be treated in the same manner as a trust designated beneficiary.
(c) The Board of Trustees shall have authority to promulgate such rules as are necessary to implement the provisions of this section.
(Ord. No. 23463, § 3, 10-9-07; Ord. No. 23758, § 2, 12-9-08, eff. 1-1-09; Ord. No. 24375, § 1, 11-22-11, eff. 12-31-11; Ord. No. 25482, § 2, 10-25-16)
Source: City of Oklahoma City, Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/ok/oklahoma_city/codes/code_of_ordinances?nodeId=OKMUCO2020_CH40PERESY_ARTIIIPERE_DIV1EMREPR_PTBGEPR_S40-87DITR-TTRNOBEFetched: 10/28/2026