PUBLIC LAW 98-397—AUG. 23, 1984 I
98 STAT. 1449
(4) CLARIFICATION OF ELIGIBILITY OF PARTICIPANT FOR LUMP
SUM TREATMENT.—Paragraph (4) of section 402(e) (relating to tax on lump sum distributions) is amended by adding at the end thereof the following new subparagraph:
26 USC 402.
"(M) BALANCE TO CREDIT OF EMPLOYEE NOT TO INCLUDE AMOUNTS PAYABLE UNDER QUALIFIED DOMESTIC RELATIONS
ORDER.—For purposes of this subsection, subsection (a)(2) of this section, and section 403(a)(2), the balance to the credit of an employee shall not include any amount payable to an alternate payee under a qualified domestic relations order (within the meaning of section 414(p)).". SEC. 205. RESTRICTION ON MANDATORY DISTRIBUTIONS. (a) GENERAL RULE.—Subsection (a) of section 411 (relating to minimum vesting standards) is amended by adding at the end thereof the following new paragraph:
26 USC 403. Ante, p. 1445. 26 USC 4 ii.
"(11) RESTRICTIONS ON CERTAIN MANDATORY DISTRIBUTIONS.—
"(A) IN GENERAL.—If the present value of any accrued benefit exceeds $3,500, such benefit shall not be treated as
? nonforfeitable if the plan provides that the present value of such benefit could be immediately distributed without the consent of the participant. "(B) DETERMINATION OF PRESENT VALUE.—For purposes of subparagraph (A), the present value shall be calculated by J. 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.". (b) CONFORMING AMENDMENT.—Subparagraph (B) of section 411(a)(7) (relating to effect of certain distributions) is amended by 26 USC 411. striking out "$1,750" and inserting in lieu thereof "$3,500". SEC. 206. PARTICIPANT TO BE NOTIFIED THAT BENEFITS MAY BE FORFEITABLE. Subsection (e) of section 6057 (relating to individual statement to 26 USC 6Ci57. participants) is amended by adding at the end thereof the following new sentence: "Such statement shall also include a notice to the participant of any benefits which are forfeitable if the participant ,| j ^, f«;. dies before a certain date.". SEC. 207. WRITTEN EXPLANATION OF ROLLOVER TREATMENT REQUIRED TO BE GIVEN TO RECIPIENT OF DISTRIBUTIONS ELIGIBLE FOR ROLLOVER TREATMENT. (a) GENERAL RULE.—Section 402 (relating to taxability of benefici- 26 USC 402. ary of employees trusts) is amended by adding at the end thereof the following new subsection: "(f) WRITTEN EXPLANATION TO RECIPIENTS OF DISTRIBUTIONS ELIGIBLE FOR ROLLOVER TREATMENT.—
"(1) IN GENERAL.—The plan administrator of any plan shall, when making a qualifying rollover distribution, provide a written explanation to the recipient— "(A) of the provisions under which such distribution will not be subject to tax if transferred to an eligible retirement • > plan within 60 days after the date on which the recipient received the distribution, and 31-194 - 0 - 86 - 10: QL. 3 Part 2
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