Section 7. Definitions

A. “Another qualified plan” for the purposes of the direct rollover provisions in Subsection C of Section 10-11-124 NMSA 1978, means an eligible retirement plan, including: (1) an individual retirement account described in Internal Revenue Code Section 408(a); (2) an individual retirement annuity described in Internal Revenue Code Section 408(b); (3) a qualified trust described in Internal Revenue Code Section 401(a) that accepts the distributee's eligible rollover distribution; (4) an annuity plan described in Internal Revenue Code Section 403(a); (5) effective January 1, 2002, an annuity contract described in Internal Revenue Code Section 403(b); (6) effective January 1, 2002, a plan eligible under Internal Revenue Code Section 457(b) that is maintained by a state, political subdivision of a state or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into the plan; or (7) effective January 1, 2008, a Roth IRA described in Internal Revenue Code Section 408A. B. “Direct rollover” means a payment by the retirement system to the eligible retirement plan specified by the distributee. C. “Distributee” means: (1) an employee or a former employee; (2) an employee's or former employee's surviving spouse; (3) an employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Internal Revenue Code Section 414(p); (4) effective January 1, 2007, a non-spouse beneficiary who is a designated beneficiary as defined by Internal Revenue Code Section 401(a)(9)(E); or (5) effective January 1, 2002, a surviving spouse, as defined by federal law, or a spouse or former spouse who is an alternate payee under a domestic relations order dividing PERA benefits, as defined in Internal Revenue Code Section 414(p). D 414(p); (4) effective January 1, 2007, a non-spouse beneficiary who is a designated beneficiary as defined by Internal Revenue Code Section 401(a)(9)(E); or (5) effective January 1, 2002, a surviving spouse, as defined by federal law, or a spouse or former spouse who is an alternate payee under a domestic relations order dividing PERA benefits, as defined in Internal Revenue Code Section 414(p). D. “Eligible rollover distribution” means: (1) any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments, not less frequently than annually, made for the life, or the life expectancy, of the distributee or 2.80.2100 NMAC 2 the joint lives, or joint life expectancies, of the distributee and the distributee's designated beneficiary, or for a specified period of 10 years or more; (2) any distribution to the extent such distribution is required under Internal Revenue Code Section 401(a)(9); (3) the portion of any distribution that is not includible in gross income; or (4) any other distribution that is reasonably expected to total less than two hundred dollars ($200) during the year.