What are the new rollover rules beginning on or after January 1, 2002?
The rollover rules have been changed, beginning January 1, 2002. Funds distributed from a TSA may be rolled over to a Cash or Deferred Arrangement under section 401(k), a governmental 457(b) arrangement or another TSA. Funds distributed from these plans may also be rolled over into a TSA. However, if the funds distributed from one of these plans consists of amounts that were previously rolled over from another type of plan, then such distributions may be subject to a 10 percent early withdrawal tax under section 72(t) of the Code. Amounts distributed from an IRA may be rolled over into a TSA.
