Sec. 401. Exception from required distributions where aggregate retirement savings do not exceed $100,000
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Section 401(a)(9) (relating to required distributions) is amended by adding at the end the following new subparagraph: If, as of a measurement date, the aggregate balance to the credit of an employee under all applicable eligible retirement plans does not exceed $100,000, then the requirements of subparagraph
(A)shall not apply to the employee during any succeeding calendar year. In addition, if, as of a measurement date, the aggregate balance to the credit of an employee under all applicable eligible retirement plans does not exceed $100,000, then the requirements of subparagraph
(B)shall not apply during any succeeding calendar year to the employee’s designated beneficiary with respect to the designated beneficiary’s interest in the balance to the credit of the deceased employee. For purposes of this subparagraph, the term applicable eligible retirement plan means an eligible retirement plan (as defined in section 402(c)(8)(B)) and any other plan, contract, or arrangement to which the requirements of this paragraph apply. In determining the aggregate balance under clause (i), there shall not be taken into account the value of any benefits under a defined benefit plan that, on the measurement date, are being paid as a life annuity. The initial measurement date for an individual is the last day of the calendar year preceding the earlier of— the calendar year in which the employee attains age 70 ½ , or the calendar year in which the employee dies. If, in a calendar year, an individual who is exempted from the requirements of this paragraph pursuant to clause
(i)receives contributions, rollovers, or transfers of amounts, or accrues additional benefits under a defined benefit plan, that were not previously taken into account in applying this subparagraph, then the last day of that calendar year shall be a new measurement date and a new determination shall be made as to whether clause
(i)applies. The value of defined benefit plan benefits is determined in accordance with the applicable interest rate and applicable mortality rate assumptions under section 417(e), except that the value shall be equal to the amount of the single sum payment payable to the extent available under the plan. For an individual whose aggregate balance exceeds the exemption level in clause
(i)by less than $10,000, required minimum distribution requirements will phase in based on the ratio of— the amount by which the aggregate balance exceeds the exemption level, to $10,000. The Secretary shall adjust annually the $100,000 amount specified in clause
(i)for increases in the cost-of-living at the same time and in the same manner as adjustments under section 415(d); except that the base period shall be the calendar quarter beginning July 1, 2013, and any increase which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000. . The amendment made by this section shall apply to initial measurement dates occurring on or after December 31, 2013.