Sec. 231. Modification of required minimum distribution rules where portion of benefit of defined contribution plan is annuitized
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Section 401(a)(9) is amended by redesignating subparagraph
(F)as subparagraph
(G)and by inserting after subparagraph
(E)the following: This paragraph shall not apply to the portion of an employee's entire interest under a defined contribution plan which is invested in a qualified deferred annuity in accordance with the requirements of subsection (o). . Section 401 is amended by redesignating subsection
(o)as subsection
(p)and by inserting after subsection
(n)the following: Subparagraph
(F)of subsection (a)(9) shall apply to the portion of an employee's entire interest under the plan invested in a qualified deferred annuity only if— the annuity contract is purchased on or before the required beginning date, and the investment in the contract does not exceed 25 percent of the employee's entire interest under the plan as of the close of the calendar year preceding the calendar year in which the purchase occurs. Subparagraph
(F)of subsection (a)(9) shall apply only with respect to 1 qualified deferred annuity purchased with a portion of an employee's interest in any plan. For purposes of subsection (a)(9)(F) and this subsection, the term qualified deferred annuity means an annuity contract— which is a commercial annuity (as defined in section 3405(e)(6)) which provides benefits in the form of either— a single annuity for the life of the employee under which the annuity payments are substantially equal periodic payments made not less frequently than annually, or a qualified joint and survivor annuity (as defined in section 417(b)) which is the actuarial equivalent of an annuity under clause (i), and under which payments are deferred but must commence no later than the date on which the employee attains the age of 85. If— an employee dies before the distribution of the employee's interest has begun in accordance with subsection (a)(9)(A)(ii) and before the employee has invested in a qualified deferred annuity in accordance with this subsection, and the designated beneficiary is the surviving spouse of the employee, the surviving spouse may invest any portion of the entire interest in a qualified deferred annuity in accordance with this subsection in the same manner as the employee but the required beginning date shall not be earlier than, and the deferral period of the annuity shall be based on, the dates the employee would have attained the age of 70 ½ or 85, respectively. 403(b) s In the case of individual retirement plans and annuity contracts to which the requirements of subsection (a)(9) apply by reason of subsections (a)(6) and (b)(3) of section 408 and section 403(b)(10), the employee may elect to treat all such plans and accounts with the same required beginning date as 1 plan for purposes of applying this subsection. . The amendments made by this section shall apply to investments in annuity contracts after December 31, 2013.