Treatment of plan distributions

If a distribution to an individual would (without regard to clause (ii)) be a qualified birth or adoption distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as a qualified birth or adoption distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $5,000.

For purposes of subclause (I), the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or ( o ) of section 414.