Common use of Direct Transfer Clause in Contracts

Direct Transfer. In its discretion, the Trustee may accept the direct transfer of Plan assets from the trustee of other retirement plans described in Code Section 401(a). If the Plan receives a direct transfer of elective deferrals (or amounts treated as elective deferrals) under a Plan with a Code Section 401(k) arrangement, the distribution restrictions of Code Sections 401(k)(2) and (10) continue to apply to those transferred elective deferrals.