Suspension of required beginning date for distributions from defined contribution plans

(a)

In general

In the case of a defined contribution plan— (1)section 401(a)(9) of the Internal Revenue Code of 1986 shall not apply during the suspension period, (2)in lieu of the calendar year specified in subparagraph (C)(i) of section 401(a)(9) of such Code, the calendar year specified in such subparagraph shall be the later of— (A)the calendar year described in such subparagraph (C)(i), or (B)calendar year 2010, and (3)the suspension period shall not be taken into account for purposes of applying any time limitation in such section 401(a)(9). (b)

Suspension period

For purposes of this section, the term suspension period means the period beginning on January 1, 2008, and ending on December 31, 2009. (c)

Application to certain other plans

The following sections shall be applied for the suspension period under rules similar to the rules of subsection (a) of this section— (1)in the case of a defined contribution plan, subsections (a) and (b) of section 403, and sections 408 and 408A, of such Code, and (2)in the case of an eligible deferred compensation plan described in section 457(b) of such Code which is maintained by an eligible employer described in section 457(e)(1)(A)) of such Code, section 457 of such Code. (d)

Application to certain periodic payments

For purposes of this section, in the case of a defined contribution plan, the failure to make a payment from a qualified retirement plan during the suspension period in an amount less than would be required under the applicable method shall not be treated as a modification for purposes of section 72(t)(2)(A)(iv) of such Code. (e)

Provisions relating to plan amendments

(1)

In general

If this section applies to any plan or annuity contract, such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph (2)(B)(i). (2)

Amendments to which section applies

(A)

In general

This section shall apply to any amendment to any plan or annuity contract which is made— (i)pursuant to this section or pursuant to any regulation issued by the Secretary of the Treasury to carry out this section, and (ii)on or before the last day of the first plan year beginning on or after January 1, 2009. (B)

Conditions

This section shall not apply to any amendment unless— (i)during the period— (I)beginning on the first day of the suspension period, and (II)ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan or contract amendment is adopted), the plan or contract is operated as if such plan or contract amendment were in effect, and (ii)such plan or contract amendment applies retroactively for such period. (f)

Effective date

(1)

In general

This section shall take effect on the date of the enactment of this Act. (2)

Recontribution of distributions before date of enactment

(A)

In general

Any individual who receives a payment or distribution during the period beginning on January 1, 2008, and ending on the date of the enactment of this Act from a plan to which subsection (a) or (c) of this section applies may, before the end of the suspension period, make one or more contributions in an aggregate amount not to exceed the amount of such payments or distributions to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of such Code, as the case may be. (B)

Treatment of repayments of distributions from eligible retirement plans other than IRAs

For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) to an eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such payments or distributions in an eligible rollover distribution (as defined in section 402(c)(4) of such Code) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution. (C)

Treatment of repayments for distributions from IRAs

For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) to an individual retirement plan (as defined by section 7701(a)(37) of such Code), then, to the extent of the amount of the contribution, such payments or distributions shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the individual retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.