PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 117 service under such plan in any plan year to which the amendments made by this section apply. SEC. 634. MODIFICATION TO MINIMUM DISTRIBUTION RULES. The Secretary of the Treasury shall modify the life expectancy tables under the regulations relating to minimum distribution requirements under sections 401(a)(9), 408(a)(6) and (b)(3), 403(b)(10), and 457(d)(2) of the Internal Revenue Code to reflect current life expectancy. SEC. 635. CLARIFICATION OF TAX TREATMENT OF DIVISION OF SEC- TION 457 PLAN BENEFITS UPON DIVORCE. (a) IN GENERAL.—Section 414(p)(ll) (relating to application of rules to governmental and church plans) is amended— (1) by inserting "or an eligible deferred compensation plan (within the meaning of section 457(b))" after "subsection (e))"; and (2) in the heading, by striking "GOVERNMENTAL AND CHURCH PLANS" and inserting "CERTAIN OTHER PLANS". (b) WAIVER OF CERTAIN DISTRIBUTION REQUIREMENTS.—Paragraph (10) of section 414(p) is amended by striking "and section 409(d)" and inserting "section 409(d), and section 457(d)". (c) TAX TREATMENT OF PAYMENTS FROM A SECTION 457 PLAN.— Subsection (p) of section 414 is amended by redesignating paragraph (12) as paragraph (13) and inserting after paragraph (11) the following new paragraph: " (12) TAX TREATMENT OF PAYMENTS FROM A SECTION 457 PLAN. — If a distribution or payn>ent from an eligible deferred compensation plan described in section 457(b) is made pursuant to a qualified domestic relations order, rules similar to the rules of section 402(e)(1)(A) shall apply to such distribution or payment.". (d) EFFECTIVE DATE. —The amendment made by this section shall apply to transfers, distributions, and payments made after December 31, 2001. SEC. 636. PROVISIONS RELATING TO HARDSHIP DISTRIBUTIONS. (a) SAFE HARBOR RELIEF. — (1) IN GENERAL.— The Secretary of the Treasury shall revise the regulations relating to hardship distributions under section 401(k)(2)(B)(i)(IV) of the Internal Revenue Code of 1986 to provide that the period an employee is prohibited from making elective and employee contributions in order for a distribution to be deemed necessary to satisfy financial need shall be equal to 6 months. (2) EFFECTIVE DATE. —The revised regulations under this subsection shall apply to years beginning after December 31, 2001. (b) HARDSHIP DISTRIBUTIONS NOT TREATED AS ELIGIBLE ROLL- OVER DISTRIBUTIONS.— (1) MODIFICATION OF DEFINITION OF ELIGIBLE ROLLOVER. — Subparagraph (C) of section 402(c)(4) (relating to eligible rollover distribution) is amended to read as follows: "(C) any distribution which is made upon hardship of the employee.". (2) EFFECTIVE DATE. —The amendment made by this subsection shall apply to distributions made after December 31, 2001. 26 USC 414. Applicability. 26 USC 414 note. Applicability. Applicability. 26 USC 402 note.
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