The definition of an Eligible Retirement Plan (to receive a rollover) includes "a qualified trust". 402©(8)(B),1.402©-2, Q&A-2.

Does this mean a DB Plan can accept a rollover? If it does, how does one account for the value of the rollover?

Yes, a DB plan can accept a rollover, as long as the plan document permits the acceptance of rollovers. The money should be kept in a separate account, or at a minimum, accounted for separately from the other DB assets.

FYI, the following is from the preamble to the final regs on direct rollovers and rollover withholding (TD 8619):


"d. Direct Rollovers to Qualified Defined Benefit Plans

The definition of eligible retirement plan under section 402© includes all qualified trusts (defined contribution plans and defined benefit plans) as well as qualified annuity plans under section 403(a) and individual retirement plans. For purposes of section 401(a)(31), section 401(a)(31)(D) provides that the only qualified trusts that are treated as eligible retirement plans are defined contribution plans. Commentators asked whether a plan may permit direct rollovers to qualified defined benefit plans. The final regulations clarify that the limitation in section 401(a)(31)(D) applies only for purposes of determining the scope of the requirement under section 401(a)(31), while the definition of eligible retirement plan in section 402©(8)(B) controls the types of plans to which direct rollovers are permitted. Thus, under section 401(a)(31), a plan is required to offer a direct rollover to any defined contribution plan, and is permitted (but not required) to offer a direct rollover to a qualified trust that is a defined benefit plan. In addition, the final regulations clarify that an eligible rollover distribution that is paid in a direct rollover to a defined benefit plan is not subject to withholding."

Does the DB plan accepting the rollover have to offer a QJSA with respect to the rolled over amounts? I know that the rollover strips the rolled over amounts of any QJSA requirements under the transferor plan, but do the QJSA requirements of the transferee plan attach to the rolled over amounts?