TEFRA Transitional Rule Sample Clauses
The TEFRA Transitional Rule is a provision that governs how certain tax regulations under the Tax Equity and Fiscal Responsibility Act (TEFRA) are applied during a transition period. It typically specifies which partnerships or tax years are subject to the old rules versus the new TEFRA procedures, often based on when a partnership was formed or when a tax year began. For example, partnerships established before a certain date may continue to follow previous audit and adjustment procedures for a limited time. The core function of this clause is to provide clarity and administrative ease by ensuring a smooth transition from old to new tax compliance frameworks, thereby preventing confusion or unfair retroactive application of new rules.
TEFRA Transitional Rule. Notwithstanding any other provisions of this Plan, distribution on behalf of any Participant may be made in accordance with the following requirements (regardless of when such distribution commences):
(a) The distribution must have been one provided for in the Plan.
(b) The distribution by the Plan is one which would not have disqualified the Plan under Section 401(a)(9) of the Code as in effect prior to amendment by the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”).
(c) The distribution is in accordance with a method of distribution designated by the Participant whose interest is being distributed or, if the Participant is deceased, by a Beneficiary of such Participant.
(d) Such designation was in writing, was signed by the Participant or the Beneficiary, and was made before January 1, 1984.
(e) The Participant had accrued a benefit under the Plan as of December 31, 1983.
(f) The method of distribution designated by the Participant or the Beneficiary specifies the time at which distribution will commence, the period over which distribution will be made, and in the case of any distribution upon the Participant’s death, the Beneficiaries of the Participant listed in order of priority.
TEFRA Transitional Rule. Where a Participant had 1) accrued a benefit under the Plan (or a predecessor plan as merged herein) before July 1, 1984, and 2) designated a method of distribution which would not have disqualified the trust under Code section 401(a)(9) as in effect prior to amendment by the Deficit Reduction Act of 1984, and 3) such designation was in writing signed by the Participant before January 1, 1984, distribution to such Participant (or his Beneficiary) need not begin prior to termination of his or her employment with all Related Companies. If benefit payments cannot begin at the time required because the location of the Participant cannot be ascertained (after a reasonable search), the Administrator may, at any time thereafter, treat such person's Account as forfeited subject to the provisions of Section 18.5.
TEFRA Transitional Rule. (a) Notwithstanding other requirements in Article 6, the Plan Administrator may direct the Trustee to make distributions on behalf of any Employee, including a Five-Percent Owner, subject to the following provisions, regardless of when the distributions commence, if:
(1) The distribution would not have disqualified the trust under Code section 401(a)(9) as in effect prior to amendment by the Deficit Reduction Act of 1984.
(2) The distribution is consistent with a method elected by the Employee whose Account is being distributed or, if the Employee is deceased, by a Beneficiary of the Employee.
(3) The election was made in writing before January 1, 1984 and signed by the Employee or Beneficiary.
(4) The Employee had accrued a benefit under the plan as of December 31, 1983.
(5) The distribution method elected by the Employee or Beneficiary specifies a commencement date, the distribution period and, in the case of any distribution at the Employee's death, the Beneficiaries of the Employee listed in order of priority.
(b) A distribution at death will not be covered by this transitional rule unless the distribution election contains the required information for distributions to be made when the Employee dies.
(c) For any distribution that commenced before January 1, 1984, and continues after December 31, 1983, the Employee or Beneficiary to whom the distribution is being made, will be presumed to have designated the method of distribution under which the distribution is being made if the method was specified in writing and the distribution satisfied the requirements in subsection (a)(1) and (5).
(d) If a Participant or Beneficiary revokes an election, any subsequent distribution must satisfy the requirements of Code section 401(a)(9) and the proposed regulations thereunder. If a Participant or Beneficiary revokes a designation after the date distributions are required to begin, the Plan Administrator must direct the Trustee to distribute by the end of the calendar year following the calendar year in which the revocation occurs the total amount not yet distributed that would have been required to have been distributed in order to satisfy Code section 401(a)(9) and the proposed regulations thereunder but for the election authorized under Code section 242(b)(2). For calendar years beginning after December 31, 1988, such distributions also must meet the minimum distribution incidental benefit requirements in section 1.40l(a)(9)-2 of the proposed federal income tax ...
TEFRA Transitional Rule. Notwithstanding other requirements in Article 6, the Plan Administrator may direct the Trustee to make distributions on behalf of any Employee, including a Five-Percent Owner, subject to the following provisions, regardless of when the distributions commence, if: