Section 31-424-1 - Distribution of funds(a) As used in this section: (1) "Participant" has the same meaning as provided in section 31-416 of the Connecticut General Statutes;(2)"Program"? has the same meaning as provided in section 31-416 of the Connecticut General Statutes; and(3)"Program administrator"? means the third-party administrator selected by the Comptroller to assist in carrying out the requirements of sections 31-416 to 31-429, inclusive, of the Connecticut General Statutes.(b) A participant may request a distribution of all or a portion of the funds from the participant's individual retirement account maintained through the program, as permitted or required by the program and any applicable provisions of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, at any time by mailing a request to the program administrator on such form or forms as prescribed by the program administrator. A participant may also request such a distribution by phone or online in such manner as prescribed by the program administrator.(c) Distributions may be subject to state and federal income tax obligations and penalties for early withdrawal. Statement of Purpose :
The proposed new regulation sets forth provisions governing the distribution of funds from the Connecticut Retirement Security Program. It is required by Section 31-424 of the Connecticut General Statutes.
A. The problems, issues or circumstances that the regulation proposes to address. Participants in the program have the right to receive distributions of the funds from their individual retirement accounts established and maintained by the program at any time. Section 31-424 of the Connecticut General Statutes was amended by Public Act 22-118 to require the Comptroller to adopt regulations governing the distribution of funds from the program. The new proposed regulation provides the methods by which participants can request a distribution of funds from their accounts.B. Summary of the main provisions of the proposed regulation. The main provisions of the new proposed regulation provide the methods by which a participant in the program can request a distribution of funds. The new proposed regulation also provides that there may be tax obligations and penalties associated with such distribution.C. The legal effects of the regulation, including all ways that the regulation would change existing regulations or other laws . The new proposed regulation is mandated by the statutes governing the Connecticut Retirement Security Program. It does not change existing regulations or other laws.Conn. Agencies Regs. § 31-424-1