Distribution rules
For purposes of this title—
(1) Exclusion
(1)Exclusion#
Any qualified distribution from a designated Roth account shall not be includible in gross income.
(2)Qualified distribution#
For purposes of this subsection—
(A) In general The term “qualified distribution” has the meaning given such term by section 408A(d)(2)(A) (without regard to clause (iv) thereof).
(B) Distributions within nonexclusion period A payment or distribution from a designated Roth account shall not be treated as a qualified distribution if such payment or distribution is made within the 5-taxable-year period beginning with the earlier of— (i) the first taxable year for which the individual made a designated Roth contribution to any designated Roth account established for such individual under the same applicable retirement plan, or (ii) if a rollover contribution was made to such designated Roth account from a designated Roth account previously established for such individual under another applicable retirement plan, the first taxable year for which the individual made a designated Roth contribution to such previously established account.
(C) Distributions of excess deferrals and contributions and earnings thereon The term “qualified distribution” shall not include any distribution of any excess deferral under section 402(g)(2) or any excess contribution under section 401(k)(8), and any income on the excess deferral or contribution.
(2)(A)In general#
The term “qualified distribution” has the meaning given such term by section 408A(d)(2)(A) (without regard to clause (iv) thereof).
(2)(B)Distributions within nonexclusion period#
(3)Treatment of distributions of certain excess deferrals#
Notwithstanding section 72, if any excess deferral under section 402(g)(2) attributable to a designated Roth contribution is not distributed on or before the 1st April 15 following the close of the taxable year in which such excess deferral is made, the amount of such excess deferral shall—
(A) not be treated as investment in the contract, and
(B) be included in gross income for the taxable year in which such excess is distributed.
(3)(A)#
not be treated as investment in the contract, and
(3)(B)#
be included in gross income for the taxable year in which such excess is distributed.
(4)Aggregation rules#
Section 72 shall be applied separately with respect to distributions and payments from a designated Roth account and other distributions and payments from the plan.
(5)Mandatory distribution rules not to apply before death#
Notwithstanding sections 403(b)(10) and 457(d)(2), the following provisions shall not apply to any designated Roth account:
(A) Section 401(a)(9)(A).
(B) The incidental death benefit requirements of section 401(a).
(5)(A)#
(5)(B)#
The incidental death benefit requirements of section 401(a).