HAR §14-44-41. Rollover contributions

(a) Rollovers may be permitted, including transfers from a Roth elective deferral account under an eligible retirement plan to a Roth elective deferral account under the plan; or from a Roth elective deferral account under the plan to a Roth elective deferral account under an eligible retirement plan, for the benefit of the participant or the designated beneficiary, subject to any restrictions under the Code. (b) In-plan Roth rollovers to a designated Roth account are treated as rollovers for the purposes of 1099-R, tax reporting, and separate tracking, and are subject to the requirements set forth by the board. (c) If a participant elects an in-plan rollover from the plan's non-Roth account to a designated Roth account within the plan, a rollover shall be permitted; provided that: (1) The rollover amount satisfies the rules for distribution under the Code. (2) The rollover amount is an eligible rollover distribution, as defined in section 402A(c) (4) of the Code. (3) The rollover amount is directed into the same investment options as the pre-tax 457(b) account. (4) The rollover amount may include, with the exception of traditional individual retirement accounts, the following: (A) Pre-tax 457(b) elective deferrals; 44-25 §14-44-41 (B) Outside 457(b) rollover monies; and (C) Non-457(b) rollover monies from qualified plans, section 403(b) plans. (d) Any amount that a participant elects to rollover to a designated Roth account shall be irrevocable and irreversible and shall be treated as includible in the participant's gross income in the taxable y~ar of the rollover. (e) The amount that a participant elects for a direct rollover to a designated Roth account may include the applicable federal and state tax withholding amount. [Eff and comp OCT - 7 20Z3 (Auth: HRS §88E-3) (Imp: HRS §88E-3) §14-44-42 Rollovers into the plan; rollovers out of the plan. (a) A participant may elect a direct rollover into the designated Roth account under the plan from another Roth elective deferral account, provided that the amount satisfies the rules for distribution under the Code. (b) A participant may elect a direct rollover out of the plan to another Roth elective deferral account, provided that the amount satisfies the rules for distribution under the Code. [Eff and comp OCT -7 2023 (Auth: HRS §88E-3) (Imp: HRS §88E-3) §14-44-43 Distributions from the designated Roth account. (a) A distribution from the designated Roth account is a qualified distribution if the distribution occurs at least five years after the year of the participant's first designated Roth and is made: (1) On or after attainment of age 59 1/2 years; (2) On account of the employee's disability; or (3) On or after the employee's death. 44-26 §14-44-44 (b) A qualified distribution may be rolled over to another designated Roth account only in a direct rollover. (c) A distribution request shall be filed in accordance with section 14-44-22. [Eff and comp OCT - 7 2023 ] (Auth: HRS §88E-3) (Imp: HRS §88E-3) SUBCHAPTER 10 IN-SERVICE CORONAVIRUS RELATED DISTRIBUTION OPTIONS §14-44-44 Request for an in-service coronavirus related distribution under the CARES Act. (a) A participant may request an in-service withdrawal for coronavirus related distributions under the CARES Act, provided that the withdrawal is a single or lump sum or partial lump sum distribution from the account up to a maximum aggregate limit of $100,000 on or after January 1, 2020 and before December 31, 2020. (b) The participant must: (1) Be diagnosed with the virus SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention; (2) Have a spouse or dependent who is diagnosed similarly with the virus or disease; or (3) Be experiencing adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to the virus, being unable to work due to a lack of child care due to the virus, the closing or reducing hours of a business owned or operated by the individual due to the virus; or other eligibility factors as determined by the Internal Revenue Service. 44-27 §14-44-44 A self-certification form that satisfies the eligibility requirements for a coronavirus related distribution must be submitted by the participant. (c) An election for a withdrawal by a participant shall be filed with the administrator and subject to the administrator's approval. A participant shall certify whether the withdrawal satisfies the eligibility requirements for a coronavirus related distribution. (d) A distribution to satisfy an approved coronavirus related withdrawal shall not be permitted from the designated Roth account. [Eff and comp OCT -7 2023 ] (Auth: HRS §88E-3) (Imp: HRS §88E-3) §14-44-45 Repayment of a coronavirus related distribution under the CARES Act. A participant may repay all or part of the amount of a coronavirus related distribution to the plan within three years after the date of the distribution was received, and as prescribed under the Code. [Eff and comp OCT -7 2023 ] (Auth: HRS §88E-3) (Imp: HRS §88E-3) 44-28 DEPARTMENT OF HUMAN RESOURCES DEVELOPMENT Amendments to and compilation of chapter 14-41 to 14-44,. Hawaii Administrative Rules, on the Summary page dated July 26, 2023, were adopted on July 26, 2023, following a public hearing held on July 26, 2023, after public notice was given in the Honolulu Star Advertiser, The Maui News, The Garden Island News, West Hawaii Today, and the Hawaii Tribune Herald, on June 26, 2023. These amendments shall take effect ten days after filing with the Office of the Lieutenant Governor. BRENNA H. HASHIMOTO Director Department of Human Resources Development S2:~ Governor State of Hawaii Date: APPROVED AS TO FORM: t?a...JaJL ~ -A:s t,._~jGv,,-...Q Deputy Attorney Gene~l SEP 27 2'23 Filed