Page:United States Statutes at Large Volume 98 Part 1.djvu/915

 PUBLIC LAW 98-369—JULY 18, 1984

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98 STAT. 867

"(I) the date on which the distributions are required to begin under clause (iiiXIII) shall not be earlier than the date on which the employee would have attained age 70 ¥2, and "(II) if the surviving spouse dies before the distributions to such spouse begin, this subparagraph shall be applied as if the surviving spouse were the employee. "(C) REQUIRED BEGINNING DATE.—For purposes of this paragraph, the term 'required beginning date' means April 1 of the calendar year following the later of— "(i) the calendar year in which the employee attains age 70 V2, or "(ii) the calendar year in which the employee retires. Except as provided in section 409(d), clause (ii) shall not Ante, p. 852. apply in the case of an employee who is a 5-percent owner (as defined in section 416) with respect to the plan year ending in the calendar year in which the employee attains 701/2.

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"(D) LIFE EXPECTANCY.—For purposes of this paragraph, '; the life expectancy of an employee and the employee's spouse (other than in the case of a life annuity) may be redetermined but not more frequently than annually. "(E) DESIGNATED BENEFICIARY.—For purposes of this paragraph, the term 'designated beneficiary' means any individ* '^ > « '^ ^ ual designated as a beneficiary by the employee. "(F) TREATMENT OF PAYMENTS TO CHILDREN.—Under regulations prescribed by the Secretary, for purposes of this paragraph, any amount paid to a child shall be treated as if '? "^? ' -^' it had been paid to the surviving spouse if such amount will become payable to the surviving spouse upon such child reaching majority (or other designated event permitted under regulations)." (2) REPEAL OF SECTION 242.—Section 242 of the Tax Equity and 26 USC 40i, 401 Fiscal Responsibility Act of 1982 is hereby repealed. note. (b) INDIVIDUAL RETIREMENT ACCOUNTS AND ANNUITIES.— (1) INDIVIDUAL RETIREMENT ACCOUNTS.—Section 408(a) (relat-

26 USC 408.

ing to individual retirement accounts) is amended by striking out paragraphs (6) and (7) and inserting in lieu thereof the following new paragraph: "(6) Under regulations prescribed by the Secretary, rules similar to the rules of section 401(a)(9) (relating to required Ante, p. 865. distributions) shall apply to the distribution of the entire interest of an individual for whose benefit the trust is maintained." (2) INDIVIDUAL RETIREMENT ANNUITIES.—Section 408(b) (relat-

ing to individual retirement annuities) is amended by striking out paragraphs (3) and (4), by redesignating paragraph (5) as paragraph (4), and by inserting after paragraph (2) the following new paragraph: "(3) Under regulations prescribed by the Secretary, rules similar to the rules of section 401(a)(9) (relating to required distributions) shall apply to the distribution of the entire interest of the owner." (c) SPECIAL RULE FOR CUSTODIAL ACCOUNTS.—Paragraph (7) of

section 403(b) (relating to custodial accounts for regulated invest- 26 USC 403. ment company stock) is amended by adding at the end thereof the following new subparagraph:

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