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* * * * * (vi) For needs of paragraph (d)(four)(i) of the segment, a distribution shall be considered to be manufactured due to the termination of an personnel's participation in the prepare whether it is produced no later on when compared to the close of the second system year subsequent the prepare calendar year by which these kinds of termination happens, or if these types of distribution would've been made under the strategy through the shut of these types of next approach calendar year but for The point that the existing worth of the nonforfeitable accrued gain then exceeded the cash-out limit in influence underneath § one.
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The IRS and Treasury note that elimination of the lookback rule is not likely to present sizeable opportunities for individuals to evade the spousal-consent procedures. In the situation of any approach topic to your spousal-consent provisions of sections 401(a)(eleven) and 417, a distribution that attracts a participant's accrued gain from a worth above the cash-out limit to a price at or underneath the cash-out Restrict will by itself have to have spousal consent.
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