Distributions must be lump sum distributions
(i) In general
(i)In general#
A termination shall not be treated as described in subparagraph (A) with respect to any employee unless the employee receives a lump sum distribution by reason of the termination.
(ii)Lump-sum distribution#
For purposes of this subparagraph, the term “lump-sum distribution” has the meaning given such term by section 402(e)(4)(D) (without regard to subclauses (I), (II), (III), and (IV) of clause (i) thereof). Such term includes a distribution of an annuity contract from—
(I) a trust which forms a part of a plan described in section 401(a) and which is exempt from tax under section 501(a), or
(II) an annuity plan described in section 403(a).
(ii)(I)#
a trust which forms a part of a plan described in section 401(a) and which is exempt from tax under section 501(a), or
(ii)(II)#
an annuity plan described in section 403(a).