PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2955
(iv) Clause (ii) of section 206(d)(3)(E) of such Act is amended to read as follows: "(ii) For purposes of this subparagraph, the term 'earliest retirement age' means the earlier of— "(I) the date on which the participant is entitled to a distribution under the plan, or "(II) the later of the date of the participant attains age 50 or the earliest date on which the participant could begin receiving benefits under the plan if the participant separated from service." (d) AMENDMENTS RELATED TO SECTIONS 105 AND 205 OF THE ACT.— (1) VESTED ACCRUED BENEFIT.— (A) AMENDMENTS TO THE INTERNAL REVENUE CODE.—
(i) Subparagraph (A) of section 411(a)(ll) (relating to restrictions on certain mandatory distributions) is amended to read as follows: "(A) IN GENERAL.—If the present value of any vested accrued benefit exceeds $3,500, a plan meets the requirements of this paragraph only if such plan provides that such benefit may not be immediately distributed without the consent of the participant." (ii) Subsection (a) of section 411 is amended by striking out "paragraphs (1) and (2)" in the matter preceding paragraph (1) and inserting in lieu thereof "paragraphs (1), (2), and (11)". (B) AMENDMENTS TO ERISA.—Paragraph (1) of section 203
of the Employee Retirement Income Security Act of 1974 is amended to read as follows: "(1) If the present value of any vested accrued benefit exceeds $3,500, a pension plan shall provide that such benefit may not be immediately distributed without the consent of the participant." (2) DISTRIBUTIONS UNDER SECTION 404 (k).— (A) AMENDMENT TO THE INTERNAL REVENUE CODE.—Sec-
tion 411(a)(ll) is amended by adding at the end thereof the following new subparagraph: "(C) DIVIDEND DISTRIBUTIONS OF ESOPS ARRANGEMENT.—
This paragraph shall not apply to any distribution of dividends to which section 404(k) applies." (B) AMENDMENT TO ERISA.—Section 203(e) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end thereof the following new paragraph: "(3) This subsection shall not apply to any distribution of dividends to which section 404(k) of the Internal Revenue Code of 1954 applies." (e) AMENDMENTS RELATED TO SECTION 207 OF THE ACT.—
(1) Paragraph (1) of section 402(f) (relating to written explanation to recipients of distributions eligible for rollover treatment) is amended by striking out "qualifying rollover distribution" and inserting in lieu thereof "eligible rollover distribution". (2) Paragraph (2) of section 402(f) is amended to read as follows: "(2) DEFINITIONS.—For purposes of this subsection— "(A) ELIGIBLE ROLLOVER DISTRIBUTION.—The term 'eligible rollover distribution' means any distribution any portion of which may be excluded from gross income under subsection (a)(5) of this section or subsection (a)(4) of section 403 if
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