DISTRIBUTIONS UNDER RURAL COOPERATIVE PLANS.

SEC. 1443. DISTRIBUTIONS UNDER RURAL COOPERATIVE PLANS. (a) Distributions for Hardship or After a Certain Age.— Section 401(k)(7) is amended by adding at the end the following new subparagraph: “(C) Special rule for certain distributions.— A rural cooperative plan which includes a qualified cash or deferred arrangement shall not be treated as violating the requirements of section 401(a) or of paragraph (2) merely by reason of a hardship distribution or a distribution to a participant after attainment of age 591.Ji. For purposes of this section, the term ‘bardshjp distribution’ means a distribution described in paragraph (2)(B)(i)(IV) (without110 STAT. 1809 regard to the limitation of its application to profit-sharing or stock bonus plans).”. (b) Public Utility Districts.— Clause (i) of section 401(k)(7)(B) (defining rural cooperative) is amended to read as follows: “(i) any organization which— “(I) is engaged primarily in providing electric service on a mutual or cooperative basis, or “(II) is engaged primarily in providing electric service to the public in its area of service and which is exempt from tax under this subtitle or which is a State or local government (or an agency or instrumentality thereof), other than a municipality (or an agency or instrumentality thereof),”. (c) Effective Dates.— (1) Distributions.— The amendments made by subsection (a) shall apply to distributions after the date of the enactment of this Act. (2) Public utility districts.— The amendments made by subsection (b) shall apply to plan years beginning after December 31, 1996.