403(b) / 457(b)Transactions/Distributions: What is HEART Section 104(a)?

Section 104(a) of the HEART Act adds § 401(a)(37) to the Code. Under § 401(a)(37), qualified retirement plans must provide that, in the case of a participant who dies while performing qualified military service, the survivors of the participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) that would have been provided under the plan had the participant resumed employment and then terminated employment on account of death. Under section 104(c) of the Act, this new tax qualification requirement also applies to tax-deferred annuities under § 403(b) of the Code and to governmental eligible deferred compensation plans under § 457(b).