To suspend for 2008 and 2009 the required minimum distribution requirements with respect to certain defined contribution plans to the extent the interest of an individual in such plans does not exceed $300,000.

Summary: Financial Security in Retirement Act of 2008 - Suspends, for calendar 2008 and 2009, minimum distribution requirements for up to $300,000 of an individual's interest in all eligible defined contribution plans as of December 31, 2008.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Security in Retirement Act 
of 2008''.

SEC. 2. SUSPENSION OF MINIMUM DISTRIBUTION REQUIREMENTS FOR INTERESTS 
              NOT GREATER THAN $300,000.

    (a) In General.--In the case of an eligible defined contribution 
plan of an individual, sections 401(a)(9), 404(a)(2), 403(b)(10), 
408(a)(6), 408(b)(3), and 457(d)(2) of the Internal Revenue Code of 
1986 shall not apply with respect to such individual for any year 
during the suspension period to the extent such individual's interest 
in all such plans as of December 31, 2008, is not greater than 
$300,000.
    (b) Suspension Period.--For purposes of this section, the term 
``suspension period'' means the period beginning on January 1, 2008, 
and ending on December 31, 2009.
    (c) Eligible Defined Contribution Plan.--For purposes of this 
section, the term ``eligible defined contribution plan'' means--
            (1) a defined contribution plan (within the meaning of 
        section 414(i) of such Code) which is--
                    (A) an employee's trust described in section 401(a) 
                of such Code which is exempt from tax under section 
                501(a) of such Code,
                    (B) an annuity plan described in section 403(a) of 
                such Code,
                    (C) an annuity contract described in section 403(b) 
                of such Code, and
                    (D) an eligible deferred compensation plan 
                described in section 457(b) of such Code which is 
                maintained by an eligible employer described in section 
                457(e)(1)(A) of such Code, and
            (2) an individual retirement plan (as defined in section 
        7701(a)(37) of such Code).
    (d) Special Rules.--
            (1) Exception for 5-year rule.--In the case of a 
        distribution required under section 401(a)(9)(B)(ii) of such 
        Code, subsection (a) shall not apply.
            (2) Delay in required minimum distribution for 2008.--The 
        required minimum distribution for 2008 (if any) with respect to 
        any eligible defined contribution plan of an individual--
                    (A) shall be determined on the basis of the 
                individual's interest in such plan determined as of 
                December 31, 2008, and
                    (B) shall be treated as timely made if such 
                distribution is made before April 1, 2009.
            (3) Aggregation of employer plans.--
                    (A) In general.--A plan shall not be treated as 
                disqualified merely because the plan treats the 
                aggregate interest of the individual in all plans 
                maintained by the employer (and any member of any 
                controlled group which includes the employer) as such 
                individual's interest in all eligible defined 
                contribution plans.
                    (B) Controlled group.--For purposes of subparagraph 
                (A), the term ``controlled group'' means any group 
                treated as a single employer under subsection (b), (c), 
                (m), or (o) of section 414 of such Code.
            (4) Exemption of distributions during suspension period 
        from trustee transfer and withholding rules.--For purposes of 
        sections 401(a)(31), 402(f), and 3405 of such Code, any 
        distribution during the suspension period which, but for 
        subsection (a), would have been a required distribution under 
        section 401(a)(9) of such Code shall not be treated as an 
        eligible rollover distribution.
    (e) Regulations.--The Secretary of the Treasury shall prescribe 
such regulations as may be necessary to carry out the purposes of this 
section, including rules providing for the allocation of the $300,000 
amount described in subsection (a) in the case of an individual with an 
interest in more than 1 defined contribution plan.
    (f) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any plan or 
        annuity contract, such plan or contract shall be treated as 
        being operated in accordance with the terms of the plan during 
        the period described in paragraph (2)(B)(i).
            (2) Amendments to which subsection applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan or annuity contract which is 
                made--
                            (i) pursuant to this section or pursuant to 
                        any regulation issued by the Secretary of the 
                        Treasury to carry out this section, and
                            (ii) on or before the last day of the first 
                        plan year beginning on or after January 1, 
                        2009.
                    (B) Conditions.--This subsection shall not apply to 
                any amendment unless--
                            (i) during the period beginning on the 
                        first day of the suspension period and ending 
                        on the date described in subparagraph (A)(ii) 
                        (or, if earlier, the date the plan or contract 
                        amendment is adopted) the plan or contract is 
                        operated as if such plan or contract amendment 
                        were in effect, and
                            (ii) such plan or contract amendment 
                        applies retroactively for such period.
    (g) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.