Suspension of minimum distribution requirements

(a)

In general

In the case of an eligible defined contribution plan of an individual, sections 401(a)(9), 404(a)(2), 403(b)(10), 408(a)(6), 408(b)(3), and 457(d)(2) of the Internal Revenue Code of 1986 shall not apply with respect to such individual for any year during the suspension period. (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)

Eligible defined contribution plan

For purposes of this section, the term eligible defined contribution plan means— (1)a defined contribution plan (within the meaning of section 414(i) of such Code) which is— (A)an employee’s trust described in section 401(a) of such Code which is exempt from tax under section 501(a) of such Code, (B)an annuity plan described in section 403(a) of such Code, (C)an annuity contract described in section 403(b) of such Code, and (D)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, and (2)an individual retirement plan (as defined in section 7701(a)(37) of such Code). (d)

Special rules

(1)

Required beginning date during suspension period

The required beginning date with respect to any individual under section 401(a)(9) of such Code shall be determined without regard to this section for purposes of applying sections 401(a)(9), 404(a)(2), 403(b)(10), 408(a)(6), 408(b)(3), and 457(d) of such Code for calendar years after 2009. (2)

Exception for 5-year rule

In the case of a distribution required under section 401(a)(9)(B)(ii) of such Code, subsection (a) shall not apply. (3)

Exemption of distributions during suspension period from trustee transfer and withholding rules

For purposes of sections 401(a)(31), 402(f), and 3405 of such Code, any distribution during the suspension period which, but for subsection (a), would have been a required distribution under section 401(a)(9) of such Code shall not be treated as an eligible rollover distribution. (e)

Provisions relating to plan amendments

(1)

In general

If this subsection 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 subsection applies

(A)

In general

This subsection 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 subsection shall not apply to any amendment unless during the period beginning on the date such amendment takes effect and ending on December 31, 2009 (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. (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 defined contribution 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 defined contribution plan other than an individual retirement plan (as defined by section 7701(a)(37)), 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 defined contribution 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.