Sec. 318. Exception from required distributions where aggregate retirement savings do not exceed $100,000
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Section 401(a)(9), as amended by this Act, is further amended by adding at the end the following new subparagraph: If, as of a measurement date, the aggregate value of the entire interest of an employee under all applicable eligible retirement plans does not exceed $100,000, then, with respect to any applicable eligible retirement plan of the employee, during any succeeding calendar year beginning before the next measurement date— the requirements of subparagraph
(A)shall not apply to the employee, and the requirements of subparagraph
(B)shall not apply to the employee’s designated beneficiary with respect to the designated beneficiary’s interest in the interest 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, but does not include any defined benefit plan. The initial measurement date for an employee is the last day of the calendar year preceding the earlier of— the calendar year in which the employee attains the applicable age, or the calendar year in which the employee dies. If, in a calendar year, an employee to whom subparagraph
(A)or
(B)does not apply by reason of clause
(i)receives contributions, rollovers, or transfers of amounts which 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 to such employee. In the case of an employee who receives account statements at least annually with respect to a plan, the value of the employee's interest in such plan as shown on the last account statement provided to such employee for such calendar year may (at the election of the employee) be treated as the value of the employee's interest in such plan on the measurement date. If such last account statement does not include all amounts described in subclause
(II)for such calendar year, the last day of the next calendar year shall be a new measurement date in accordance with subclause
(II)and a new determination shall be made as to whether clause
(i)applies to such employee. For purposes of this subparagraph, the value of an employee's interest in a plan is the account balance of such plan. In the case of an employee whose aggregate balance described in clause
(i)as of a measurement date exceeds the dollar amount in effect under such clause by less than $10,000, the required distributions under this paragraph for calendar years beginning after such measurement date and before the next measurement date shall be equal to the amount which bears the same ratio to the required distributions otherwise determined under this paragraph as— the amount by which such aggregate balance exceeds such dollar amount so in effect, bears 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, 2018, and any increase which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000. The plan administrator of an applicable eligible retirement plan may rely on a certification provided by an employee that such employee’s interest in other applicable eligible retirement plans does not prevent such employee from being described in clause (i). Any such certification shall apply to all future years in the absence of a contrary certification from the employee, and shall apply to the current year if made not later than March 15 of such current year. . The amendment made by this section shall apply to initial measurement dates occurring on or after December 31, 2018.