In general .—
In case of a trust which is part of an eligible plan, such trust shall not constitute a qualified trust under this section unless the plan of which such trust is a part provides that if—
(I)#
a distribution described in clause (ii) in excess of $1,000 is made, and
(II)#
the distributee does not make an election under subparagraph (A) and does not elect to receive the distribution directly,