MMC Benefits Handbook
Rollovers into the Plan
You may roll over money from a tax-qualified plan, like a previous employer's 401(k) savings plan or a Conduit IRA holding a tax-qualified plan distribution. (The Plan does not accept rollovers from section 403(b) or governmental section 457(b) plans.) Rollover contributions are not matched by the Company but may be used for a withdrawal from the Plan or as security for a Plan loan.
To qualify for rollover, the distribution must be payable to you as an employee or surviving spouse (and not a non-spouse Beneficiary) and must not be part of a series of periodic payments for 10 or more years. Direct rollovers of Roth 401(k) contributions and earnings from tax-qualified plans are accepted under this Plan. You can't roll over an outstanding loan from your prior employer's tax-qualified plan into this Plan.
In the case of a Conduit IRA established with a rollover contribution from another plan, you must certify that the rollover to the IRA was made within 60 days of receiving the distribution from your former employer's tax-qualified plan and that no other amount was ever contributed to the Conduit IRA.
The distributing plan or Conduit IRA custodian issues a check payable to Transamerica Retirement Solutions f/b/o [your name], which is known as a direct trustee to trustee rollover. While it benefits you to deliver that check to the Plan as soon as possible so those assets are invested, there is no requirement that the check be delivered to the Plan immediately. However, if the distributing plan or Conduit IRA issues a check payable to you, you must provide a check made payable to Transamerica Retirement Solutions f/b/o [your name] within 60 days from the date of the check issued by the distributing Plan or Conduit IRA.
Note: The Plan only accepts rollovers from Conduit IRAs.
The Plan accepts traditional after-tax contributions but only from another employer's plan that is qualified under section 401(a) of the Internal Revenue Code, and only if the rollover is a direct trustee-to-trustee rollover from the other plan. If you want to roll over traditional after-tax contributions that you made to another employer's tax-qualified plan, you cannot have the traditional after-tax contributions paid to you first. Rollovers from IRAs may not include any after-tax contributions or Roth 401(k) contributions and earnings. In addition, this Plan accepts direct rollovers of Roth 401(k) contributions and earnings from tax-qualified plans.
How to Roll Over Money
You can roll over contributions to this Plan as soon as you are eligible to participate, or at any time thereafter. To roll over your contributions, you should complete the Rollover Contribution Form. To obtain a form, go to Colleague Connect (https://colleagueconnect.mmc.com) and click Career & Rewards. Under Find a Document select 401(k) Savings & Investment Plan or call the Employee Service Center at +1 866 374 2662. Your Rollover Contribution Form will be reviewed for approval by the Plan Administrator's designee, and you will be required to provide the supporting documentation specified on the form.
The distributing plan or Conduit IRA may issue a check payable to Transamerica Retirement Solutions f/b/o [your name], which is known as a direct trustee-to-trustee rollover. While it benefits you to deliver that check to the Plan as soon as possible so those assets are invested, there is no strict time limit. However, if the distributing plan or Conduit IRA issues a check payable to you, you must provide a check made payable to Transamerica Retirement Solutions f/b/o [your name], within 60 days from the date of the check issued by the distributing Plan or Conduit IRA.
The Plan only accepts checks or wire transfers as rollover contributions. The Plan does not accept shares of stock or mutual funds.
The form and check (or wire transfer) can be submitted on a daily basis. Approved rollovers are processed on a daily basis. A written confirmation generally will be mailed within two business days of processing.
Investing a Rollover
You will be asked to select your investments when you roll over your contributions on the Rollover Contribution Form. You may invest your rollover in one or more of the funds currently offered under the Plan. See "Investing Your Account Balance." If you do not provide any investment direction elections, your rollover contribution will be invested 100% in one of the BlackRock LifePath Index Funds (the BlackRock LifePath Index Fund that most closely matches your retirement year – based on the Plan's normal retirement age of 65) automatically. You may transfer or reallocate your account balance to new funds at any time.
However, when rolling over Roth 401(k) contributions and earnings be sure to include a statement or letter from your prior employer or trustee that includes all the necessary information outlined on the Rollover Contribution Form. If any of the information is missing from the statement or letter – or if a document is not provided, the portion of your rollover related to Roth 401(k) contributions and earnings will be returned to your prior employer or trustee seven (7) business days from the date of receipt.
Remember, under the Plan, you are responsible for the gains and losses resulting from your selection of these funds.
Borrowing from a Rollover
As an active employee, you may be eligible for a loan from your rollover account. You may also be eligible for a withdrawal from your rollover account.