Sec. 112. Treatment of custodial accounts on termination of section 403(b) plans
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403(b) plans Section 403(b)(7) of the Internal Revenue Code of 1986 is amended by adding at the end the following: If— an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph (A), and the person holding the assets of the account has demonstrated to the satisfaction of the Secretary under section 408(a)(2) that the person is qualified to be a trustee of an individual retirement plan, then, as of the date of the termination, the custodial account shall be deemed to be an individual retirement plan for purposes of this title. Any custodial account treated as an individual retirement plan under clause
(i)shall be treated as a Roth IRA only if the custodial account was a designated Roth account. . The amendment made by this section shall apply to plan terminations occurring after December 31, 2018.