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* * * * * (vi) For applications of paragraph (d)(4)(i) of this part, a distribution shall be considered to get manufactured because of the termination of an worker's participation during the system whether it is built no afterwards as opposed to near of the next prepare yr adhering to the plan year in which these types of termination occurs, or if these kinds of distribution would have been made beneath the program through the near of this kind of second strategy yr but for The point that the current price of the nonforfeitable accrued advantage then exceeded the cash-out Restrict in result below § 1.
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The IRS and Treasury Take note that removing with the lookback rule is unlikely to current substantial alternatives for contributors to evade the spousal-consent policies. In the situation of any program matter towards the spousal-consent provisions of sections 401(a)(eleven) and 417, a distribution that attracts a participant's accrued take pleasure in a value above the cash-out limit to a value at or under the cash-out limit will by itself have to have spousal consent.
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For functions of identifying an worker's ideal to an accrued benefit derived from employer contributions under a plan, the plan may possibly disregard services performed by the employee with regard to which— (A) The employee gets a distribution of your existing worth of his complete nonforfeitable advantage at the time from the distribution;
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