100 STAT. 2458
PUBLIC LAW 99-514—OCT. 22, 1986
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! ^^) jj^ GENERAL.—A cash or deferred arrangement shall not be treated as failing to meet the requirements of section 401(k)(4) of the Internal Revenue Code of 1986 (as added by ^jj|g section) to the extent such arrangement is part of a qualified offset arrangement consisting of such cash or „*" deferred arrangement and a defined benefit plan. ^^' (B) QUALIFIED OFFSET ARRANGEMENT.—For purposes of subparagraph (A), a cash or deferred arrangement is part of ^^^a qualified offset arrangement with a defined benefit plan to the extent such offset arrangement satisfies each of the following conditions with respect to the employer maintain* • ing the arrangement on April 16, 1986, and at all times '-*« thereafter: (i) The benefit under the defined benefit plan is , directly and uniformly conditioned on the initial elec- J.u J ^j^g deferrals (up to 4 percent of compensation). (ii) The benefit provided under the defined benefit plan (before the offset) is at least 60 percent of an A t,-uiMt . employee's cumulative elective deferrals (up to 4 percent of compensation). (iii) The benefit under the defined benefit plan is reduced by the benefit attributable to the employee's elective deferrals under the plan (up to 4 percent of compensation) and the income allocable thereto. The ^•' interest rate used to calculate the reduction shall not " "/:" exceed the greater of the rate under section •;iH5; 411(a)(ll)(B)(ii) of such Code or the interest rate ap,.,,, plicable under section 411(c)(2)(C)(iii) of such Code, <;. n*: i taking into account section 411(c)(2)(D) of such Code. For purposes of applying section 401(k)(3) of such Code to the cash or deferred arrangement, the benefits under the defined benefit plan conditioned on initial elective deferrals j^^' may be treated as matching contributions under such rules *' as the Secretary of the Treasury or his delegate may prescribe. The Secretary shall provide rules for the application of this paragraph in the case of successor plans. (C) DEFINITION OF EMPLOYER.—For purposes of this paragraph, the term "employer" includes any research and development center which is federally funded and engaged in cancer research, but only with respect to employees of contractor-operators whose salaries are reimbursed as direct costs against the operator's contract to perform work at such center. S--U
(g) WITHDRAWALS ON SALE OF ASSETS.—Subclauses (II), (III),
and (IV) of section 401(k)(2)(B)(i) of the Internal Revenue Code of 1986 (as added by subsection (b)(1)) shall apply to distributions after December 31, 1984. (7) DISTRIBUTIONS BEFORE PLAN AMENDMENT.—
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(A) IN GENERAL.—If a plan amendment is required to allow a plan to make any distribution described in section 401(k)(8) of the Internal Revenue Code of 1986, any such distribution which is made before the close of the 1st plan year for which such amendment is required to be in effect under section 1140, shall be treated as made in accordance with the provisions of such plan. (B) DISTRIBUTIONS PURSUANT TO MODEL AMENDMENT.—
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