PUBLIC LAW 98-369—JULY 18, 1984
98 STAT. 869
(2) QUALIFIED ANNUITIES.—Clause (i) of section 403(a)(4)(A) 26 USC 403. (relating to rollover amounts) is amended to read as follows: "(i) any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him,'. (3) SECTION 403(b) ANNUITIES.—Clause (i) of section 403(b)(8)(A) (relating to rollover amounts) is amended to read as follows: "(i) any portion of the balance to the credit of an employee in an annuity contract described in paragraph (1) is paid to him,". (b) SPECIAL RULES FOR ROLLOVERS OF PARTIAL DISTRIBUTIONS.—
Paragraph (5) of section 402(a) is amended by redesignating subpara- 26 USC 402. graphs (D) and (E) as subparagraphs (E) and (F), respectively, and by inserting after subparagraph (C) the following new subparagraph: "(D) SPECIAL RULES FOR PARTIAL DISTRIBUTIONS.—
"(i) REQUIREMENTS.—Subparagraph (A) shall apply to a partial distribution only if— "(I) such distribution is of an amount equal to at least 50 percent of the balance to the credit of the employee in a qualified trust (determined immediately before such distribution and without regard to subsection (e)(4)(C)), "(II) such distribution is not one of a series of periodic payments, and "(III) the employee elects (at such time and in such manner as the Secretary shall by regulations prescribe) to have subparagraph (A) apply to such partial distribution. "(ii) PARTIAL DISTRIBUTIONS MAY BE TRANSFERRED
ONLY TO INDIVIDUAL RETIREMENT PLANS.—In the case of a partial distribution, a plan described in subclause (IV) or (V) of subparagraph (E)(iv) shall not be treated as an eligible retirement plan. "(iii) DENIAL OF IO-YEAR AVERAGING AND CAPITAL - r< <
GAINS TREATMENT FOR SUBSEQUENT DISTRIBUTIONS.—If
an election under clause (i) is made with respect to any partial distribution paid to any employee— "(I) paragraph (2) of this subsection, "(II) paragraphs (1) and (3) of subsection (e), and ' '(III) paragraph (2) of section 403(a), shall not apply to any distribution (paid after such partial distribution) of the balance to the credit of such employee under the plan under which such partial distribution was made (or under any other plan which, under subsection (e)(4)(C), would be aggregated with such plan). "(iv) SPECIAL RULE FOR UNREALIZED APPRECIATION.—If
an election under clause (i) is made with respect to any partial distribution, the second and third sentences of paragraph (1) shall not apply to such distribution." (c) PARTIAL DISTRIBUTIONS PAID TO SPOUSE OF EMPLOYEE AFTER EMPLOYEE'S DEATH ELIGIBLE FOR ROLLOVER.—Paragraph (7) of sec-
tion 402(a) (relating to rollover where spouse receives lump-sum distribution at death of employee) is amended to read as follows: "(7) ROLLOVER WHERE SPOUSE RECEIVES DISTRIBUTIONS AFTER
DEATH OF EMPLOYEE.—If any distribution attributable to an
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