Page:United States Statutes at Large Volume 118.djvu/1666

 118 STAT. 1636 PUBLIC LAW 108–357—OCT. 22, 2004 before the date which is 6 months after the date of separation from service (or, if earlier, the date of death of the employee). For purposes of the preceding sen tence, a specified employee is a key employee (as defined in section 416(i) without regard to paragraph (5) thereof) of a corporation any stock in which is publicly traded on an established securities market or otherwise. ‘‘(ii) UNFORESEEABLE EMERGENCY.—For purposes of subparagraph (A)(vi)— ‘‘(I) IN GENERAL.—The term ‘unforeseeable emergency’ means a severe financial hardship to the participant resulting from an illness or accident of the participant, the participant’s spouse, or a dependent (as defined in section 152(a)) of the participant, loss of the participant’s property due to casualty, or other similar extraor dinary and unforeseeable circumstances arising as a result of events beyond the control of the partici pant. ‘‘(II) LIMITATION ON DISTRIBUTIONS.—The requirement of subparagraph (A)(vi) is met only if, as determined under regulations of the Sec retary, the amounts distributed with respect to an emergency do not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insur ance or otherwise or by liquidation of the partici pant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hard ship). ‘‘(C) DISABLED.—For purposes of subparagraph (A)(ii), a participant shall be considered disabled if the participant— ‘‘(i) is unable to engage in any substantial gainful activity by reason of any medically determinable phys ical or mental impairment which can be expected to result in death or can be expected to last for a contin uous period of not less than 12 months, or ‘‘(ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the participant’s employer. ‘‘(3) ACCELERATION OF BENEFITS.—The requirements of this paragraph are met if the plan does not permit the acceleration of the time or schedule of any payment under the plan, except as provided in regulations by the Secretary. ‘‘(4) ELECTIONS.— ‘‘(A) IN GENERAL.—The requirements of this paragraph are met if the requirements of subparagraphs (B) and (C) are met.

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