Page:United States Statutes at Large Volume 98 Part 2.djvu/288

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PUBLIC LAW 98-000—MMMM. DD, 1984

98 STAT. 1448

PUBLIC LAW 98-397—AUG. 23, 1984 "(D) SUBSEQUENT DETERMINATION OR ORDER TO BE APPLIED

Ante, p. 1445.

PROSPECTIVELY ONLY.—Any determination that an order is a qualified domestic relations order which is made after the close of the 18-month period shall be applied prospectively only. "(8) ALTERNATE PAYEE DEFINED.—The term 'alternate payee' means any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant. "(9) CONSULTATION WITH THE SECRETARY.—In prescribing regulations Under this subsection and section 401(a)(13), the Secretary of Labor shall consult with the Secretary.", (c) TAX TREATMENT OF DIVORCE DISTRIBUTIONS.— (1) ALTERNATE PAYEE MUST INCLUDE BENEFITS IN GROSS

26 USC 402.

INCOME.—Section 402(a) (relating to taxability of beneficiary of trust) is amended by adding at the end thereof the following new paragraph: "(9) ALTERNATE PAYEE UNDER QUALIFIED DOMESTIC RELATIONS

26 USC 72. Ante, p. 1445. 26 USC 72.

ORDER TREATED AS DISTRIBUTEE.—For purposes of subsection (a)(1) and section 72, the alternate payee shall be treated as the distributee of any distribution or payment made to the alternate payee under a qualified domestic relations order (as defined in section 414(p)).". (2) ALLOCATION OF INVESTMENT IN THE CONTRACT.—Subsection

(m) of section 72 (relating to special rules applicable to employee annuities and distributions under employee plans) is amended by adding at the end thereof the following new paragraph: "(10) DETERMINATION OF INVESTMENT IN THE CONTRACT IN THE

Supra.

26 USC 402.

CASE OF QUALIFIED DOMESTIC RELATIONS ORDERS.—Under regulations prescribed by the Secretary, in the case of a distribution or payment made to an alternate payee pursuant to a qualified domestic relations order (as defined in section 414(p)), the investment in the contract as of the date prescribed in such regulations shall be allocated on a pro rata basis between the present value of such distribution or payment and the present value of all other benefits payable with respect to the participant to which such order relates.". (3) ROLLOVER OF DISTRIBUTIONS UNDER QUALIFIED DOMESTIC RELATIONS ORDERS.—Paragraph (6) of section 402(a) (relating to

special rules for rollovers) is amended by adding at the end thereof the following new subparagraph: "(F) QUALIFIED DOMESTIC RELATIONS ORDERS.—If—

"(i) within 1 taxable year of the recipient, the balance to the credit of the recipient by reason of any qualified domestic relations order (within the meaning of section 414(p)) is distributed or paid to the recipient, "(ii) the recipient transfers any portion of the property the recipient receives in such distributions to an eligible retirement plan described in subclause (I) or (II) of paragraph (5)(E)(iv), and "(iii) in the case of a distribution of property other than money, the amount so transferred consists of the property distributed, then the portion of the distribution so transferred shall be treated as a distribution described in paragraph (5)(A).".