Page:United States Statutes at Large Volume 96 Part 1.djvu/563

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 521

PART III—OTHER REQUIREMENTS SEC. 242. REQUIRED DISTRIBUTIONS FOR QUALIFIED PLANS. (a) GENERAL RULE. — Paragraph (9) of section 401(a) (relating to requirements for qualification) is amended to read as follows:

^^ USC 401.

"(9) REQUIRED DISTRIBUTIONS.—

"(A) BEFORE DEATH.—A t r u s t forming part of a plan shall not constitute a qualified t r u s t under this section unless the plan provides that the e n t i r e interest of each employee— "(i) either will be distributed to him not later than his taxable year in which h e a t t a i n s age 70 y2 or, in the case of a n employee other than a key employee who is a participant in a top-heavy plan, in which he retires, whichever is the later, or "(ii) will be distributed, commencing not later than such taxable year— "(I) in accordance with regulations prescribed by the Secretary, over the life of such employee or over the lives of such employee and his spouse, or "(II) in accordance with such regulations, over a period not extending beyond the life expectancy of such employee or the life expectancy of such employee and his spouse. "(B) AFTER DEATH.—A t r u s t forming part of a plan shall not constitute a qualified t r u s t under this section unless the plan provides that if— "(i) an employee dies before his e n t i r e interest has been distributed to him, or "(ii) distribution has been commenced in accordance with subparagraph (A)(ii) to his surviving spouse and such surviving spouse dies before his entire interest has been distributed to such surviving spouse, his e n t i r e interest (or the r e m a i n i n g part of such interest if distribution thereof has commenced) will be distributed within 5 years after his death (or the death of his surviving spouse). The preceding sentence shall not apply if the distribution of the interest of the employee has commenced and such distribution is for a term certain over a period permitted under subparagraph (A)(ii)(II)." (b) EFFECTIVE D A T E. —

(1) IN GENERAL.—The amendment made by subsection (a) shall apply to plan years beginning after December 31, 1983. (2) TRANSITION RULE.—A t r u s t forming part of a plan shall not be disqualified under paragraph (9) of section 401(a) of the I n t e r n a l Revenue Code of 1954, as amended by subsection (a), by reason of distributions under a designation (before January 1, 1984) by any employee of a method of distribution— (A) which does not meet the requirements of such paragraph (9), but (B) which would not have disqualified such t r u s t under paragraph (9) of section 401(a) of such Code as in effect before the amendment m a d e by subsection (a). SEC.

243. R E Q U I R E D DISTRIBUTIONS IN CASE O F INDIVIDUAL RETIREMENT PLANS.

(a) REQUIRED DISTRIBUTIONS A F T E R D E A T H. —

26 USC 401 note.

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