Page:United States Statutes at Large Volume 98 Part 2.djvu/284

 98 STAT. 1444

PUBLIC LAW 98-397—AUG. 23, 1984 "(A) the participant's annuity starting date, or "(B) the date of the participant's death. "(2) TREATMENT OF CERTAIN MARRIAGES WITHIN i YEAR OF

ANNUITY STARTING DATE FOR PURPOSES OF QUALIFIED JOINT AND SURVIVOR ANNUITIES.—For purposes of paragraph (1), if— "(A) a participant marries within 1 year before the annuity starting date, and "(B) the participant and the participant's spouse in such marriage have been meirried for at least a 1-year period ending on or before the date of the participant's death, such participant and such spouse shall be treated as having been married throughout the 1-year period ending on the participant's annuity starting date. "(e) RESTRICTIONS ON CASH-OUTS.— "(1) PLAN MAY REQUIRE DISTRIBUTION IF PRESENT VALUE NOT IN

Ante, p. 1440. 26 USC 411.

EXCESS OF $3,500.—A plan may provide that the present value of a qualified joint and survivor annuity or a qugdified preretirement survivor annuity will be immediately distributed if such value does not exceed $3,500. No distribution may be made under the preceding sentence after the annuity starting date unless the participsmt and the spouse of the participant (or where the participsmt has died, the surviving spouse) consents in writing to such distribution. "(2) PLAN MAY DISTRIBUTE BENEFIT IN EXCESS OF $3,500 ONLY WITH CONSENT.—If^ "(A) the present value of the qualified joint and survivor annuity or the qualified preretirement survivor annuity exceeds $3,500, and "(B) the participgmt and the spouse of the participant (or where the participant has died, the surviving spouse) consent in writing to the distribution, the plan may immediately distribute the present value of such annuity. "(3) DETERMINATION OF PRESENT VALUE.—For purposes of paragraphs (1) and (2), the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity shall be determined as of the date of the distribution and by using an interest rate not greater than the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination. "(f) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes of this section and section 401(a)(ll)— "(1) VESTED PARTICIPANT.—The term 'vested participant' means any participant who has a nonforfeitable right (within the meaning of section 411(a)) to any portion of the accrued benefit derived from employer contributions. "(2) ANNUITY STARTING DATE.—The term 'annuity starting date* means the first day of the first period for which an amount is received as an annuity (whether by reason of retirement or disability). "(3) EARUEST RETIREMENT AGE.—The term 'earliest retirement age' means the earliest date on which, under the plan, the participant could elect to receive retirement benefits. "(4) PLAN MAY TAKE INTO ACCOUNT INCREASED COSTS.—A plan may take into account in any equitable manner (as determined by the Secretary) any increased costs resulting from providing a

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