PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2865
(A) Subsection (b) of section 403 (relating to taxability of beneficiary under annuity purchased by section 501(c)(3) organization or public school) is amended by adding at the end thereof the following new paragraph: "(10) DISTRIBUTION REQUIREMENTS.—Under regulations prescribed by the Secretary, this subsection shall not apply to any annuity contract (or to any custodial account described in paragraph (7) or retirement income account described in paragraph (9)) unless requirements similar to the requirements of section 401(a)(9) are met (and requirements similar to the incidental death benefit requirements of section 401(a) are met) with respect to such annuity contract (or custodial account or retirement income account)." (B) Paragraph (7) of section 4030?) is amended by striking out subparagraph (D). (C) The amendments made by this paragraph shall apply to benefits accruing after December 31, 1986, in taxable years ending after such date. (4) CLARIFICATION OF REQUIRED BEGINNING DATE.—
(A) Subparagraph (C) of section 401(a)(9) (defining required beginning date) is amended by striking out the last sentence and inserting in lieu thereof the following: "Clause (ii) shall not apply in the case of an employee who is a 5-percent owner (as defined in section 416(i)(l)(B)) ^t any time during the 5-plan-year period ending in the calendar year in which the employee attains age lOVz. If the employee becomes a 5-percent owner during any subsequent plan year, the required beginning date shall be April 1 of the calendar year following the calendar year in which such subsequent plan year ends." (B) Subsection (d) of section 409 (relating to employer securities must stay in the plan) is amended by adding at the end thereof the following new sentence: "This subsection shall not apply to any distribution required under section 401(a)(9)." (5) REQUIRED DISTRIBUTIONS NOT ELIGIBLE FOR ROLLOVER TREATMENT.—
(A) Paragraph (5) of section 402(a) (relating to rollover amounts) is amended by adding at the end thereof the following new subparagraph: "(G) REQUIRED DISTRIBUTIONS NOT ELIGIBLE FOR ROLLOVER
TREATMENT.—Subparagraph (A) shall not apply to any distribution to the extent such distribution is required under section 401(a)(9)." (B)(i) Subparagraph (B) of section 403(a)(4) is amended by striking out "through (F)" and inserting in lieu thereof "through (G)". (ii) Paragraph (8) of section 4030t>) is amended by adding at the end thereof the following new subparagraph: "(D) REQUIRED DISTRIBUTIONS NOT ELIGIBLE FOR ROLLOVER
TREATMENT.—Subparagraph (A) shall not apply to any distribution to the extent such distribution is required under paragraph (10)." (C) Paragraph (3) of section 408(d) (relating to rollover contributions) is amended by adding at the end thereof the following new subparagraph:
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