98 STAT. 866
PUBLIC LAW 98-369—JULY 18, 1984 made by section 242 of the Tax Equity and Fiscal Responsibility Act of 1982, is amended to read as follows: "(9) REQUIRED DISTRIBUTIONS.—
"(A) IN GENERAL.—A trust shall not constitute a qualified trust under this subsection unless the plan provides that the entire interest of each employee— "(i) will be distributed to such employee not later than the required beginning date, or "(ii) will be distributed, beginning not later than the required beginning date, in accordance with regulations, over the life of such employee or over the lives of such employee and a designated beneficiary (or over a period not extending beyond the life expectancy of such employee or the life expectancy of such employee and a designated beneficiary). "(B) REQUIRED DISTRIBUTION WHERE EMPLOYEE DIES BEFORE ENTIRE INTEREST IS DISTRIBUTED.— "(i) WHERE DISTRIBUTIONS HAVE BEGUN UNDER SUBPARAGRAPH (A)(ii).—A trust shall not constitute a
qualified trust under this section unless the plan provides that if^ "(I) the distribution of the employee's interest has begun in accordance with subparagraph (A)(ii), and "(II) the employee dies before his entire interest has been distributed to him, the remaining portion of such interest will be distributed at least as rapidly as under the method of distributions being used under subparagraph (A)(ii) as of the date of his death. "(ii) 5-YEAR RULE FOR OTHER CASES.—A trust shall not
constitute a qualified trust under this section unless the plan provides that, if an employee dies before the distribution of the employee's interest has begun in accordance with subparagraph (A)(ii), the entire interest of the employee will be distriljuted within 5 years after the death of such employee, "(iii) EXCEPTION TO 5-YEAR RULE FOR CERTAIN AMOUNTS P A Y A B L E OVER LIFE OF BENEFICIARY.—If—
"(I) any portion of the employee's interest is payable to (or for the benefit of) a designated beneficiary, "(II) such portion will be distributed (in accordance with regulations) over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and "(III) such distributions begin not later than year after the date of the employee's death or such later date as the Secretary may by regulations prescribe, for purposes of clause (ii), the portion referred to in subclause (I) shall be treated as distributed on the date on which such distributions begin. "(iv) SPECIAL RULE FOR SURVIVING SPOUSE OF EM-
PLOYEE.—If the designated beneficiary referred to in clause (iii)(I) is the surviving spouse of the employee—
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