38-846.06. Eligible rollover distributions; direct rollovers
A. Notwithstanding any other provision of this article, a member or the member's surviving spouse beneficiary who is entitled to receive an eligible rollover distribution may elect to directly roll over all or part of that distribution to an eligible retirement plan.
B. A member's beneficiary who is not the member's spouse may elect to directly roll over all or part of an eligible rollover distribution from the system on the death of the member under the same terms and conditions as apply to a member or the member's surviving spouse beneficiary pursuant to this section, except that a nonspouse beneficiary may elect to make a direct rollover only to an eligible retirement plan as defined in section 38-842, paragraph 25, subdivision (a) or (b).
C. If a member or the member's beneficiary elects to have an eligible rollover distribution paid directly to an eligible retirement plan, that distribution shall be made in the form of a direct trustee-to-trustee transfer to the specified eligible retirement plan. The distribution shall be made in the form and at the time prescribed by the board.
D. All rollovers made pursuant to this section are subject to the direct rollover requirements under section 401(a)(31) of the internal revenue code, the rollover notice requirements under section 402(f) of the internal revenue code and the mandatory withholding requirements under section 3405(c) of the internal revenue code. The period for providing the rollover notice as required under section 402(f) of the internal revenue code is not less than thirty days and not more than one hundred eighty days before the date of distribution.