DISTRIBUTIONS DURING WORKING RETIREMENT.

SEC. 905. DISTRIBUTIONS DURING WORKING RETIREMENT.(a) Amendment to the Employee Retirement Income Security Act of 1974.—Subparagraph (A) of section 3(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(2)) is amended by adding at the end the following new sentence: “A distribution from a plan, fund, or program shall not be treated as made in a form other than retirement income or as a distribution prior to termination of covered employment solely because such distribution is made to an employee who has attained age 62 and who is not separated from employment at the time of such distribution.”.(b) Amendment to the Internal Revenue Code of 1986.—Subsection (a) of section 401 of the Internal Revenue Code of 1986 (as amended by this Act) is amended by inserting after paragraph (35) the following new paragraph:120 STAT. 1051 “(36) Distributions during working retirement.—A trust forming part of a pension plan shall not be treated as failing to constitute a qualified trust under this section solely because the plan provides that a distribution may be made from such trust to an employee who has attained age 62 and who is not separated from employment at the time of such distribution.”.(c) Effective Date.—The amendments made by this section shall apply to distributions in plan years beginning after December 31, 2006.