100 STAT. 2868
PUBLIC LAW 99-514—OCT. 22, 1986 (2) Subparagraph (E) of section 416(g)(4) (relating to benefits not taken into account if employee not employed for last 5 years) is amended to read as follows: "(E) BENEFITS NOT TAKEN INTO ACCOUNT IF EMPLOYEE NOT
EMPLOYED FOR LAST 5 YEARS.—If any individual has not performed services for the employer maintaining the plan at any time during the 5-year period ending on the determination date, any accrued benefit for such individual (and the account of such individual) shall not be taken into account." (e) AMENDMENTS RELATED TO SECTION 525 OF THE ACT.—
dXA) Subsection (c) of section 2039 (relating to exception of certain annuity interests created by community property laws) is hereby repealed. (B) The amendment made by subparagraph (A) shall apply to estates of decedents dying after the date of the enactment of this Act. (2)(A) Section 2517 (relating to certain annuities under qualified plans) is hereby repealed. (B) The table of sections for subchapter B of chapter 12 is amended by striking out the item relating to section 2517. (C) Subsection (e) of section 406 is amended by striking out paragraph (5). (D) Subsection (e) of section 407 is amended by striking out paragraph (5). (E) The amendments made by this paragraph shall apply to transfers after the date of the enactment of this Act. (3) Section 5250)) of the Tax Reform Act of 1984 is amended by adding at the end thereof the following new paragraph: "(4) IRREVOCABLE ELECTION.—For purposes of paragraph (2)
and section 245(c) of the Tax Equity and Fiscal Responsibility Act of 1982, an individual who— "(A) separated from service before January 1, 1985, with respject to paragraph (2), or January 1, 1983, with respect to section 245(c) of the Tax Equity and Fiscal Responsibility Act of 1982, and "(B) meets the requirements of such paragraph or such section other than the requirement that there be an irrevocable election, and that the individual be in pay status, shall be treated as having made an irrevocable election and as being in pay status within the time prescribed with respect to a form of benefit if such individual does not change such form of benefit before death." (f) AMENDMENT RELATED TO SECTION 526 OF THE ACT.—Paragraph
(2) of section 526(d) of the Tax Reform Act of 1984 is amended by striking out "paragraph (6)" and inserting in lieu thereof "paragraph (7)". (g) AMENDMENTS RELATED TO SECTION 527 OF THE ACT.—
(1) Paragraph (3) of section 401(k) (relating to application of participation and discrimination standards) is amended by adding at the end thereof the following new subparagraph: "(C) A cash or deferred arrsuigement shall be treated as meeting the requirements of subsection (a)(4) with respect to contributions if the requirements of subparagraph (A)(ii) are met." (2) Subparagraph (A) of section 401(k)(3) is amended by striking out the last sentence and inserting in lieu thereof the
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