Hardship distributions no longer treated as eligible rollover distributions. Beginning in 1999, hardship distributions from 401(k) plans and similar employer-sponsored retirement plans will no longer be treated as eligible rollover distributions.

5-year tax option repealed after 1999. For tax years beginning after 1999, the 5-year tax option for figuring the tax on lump-sum distributions from a qualified retirement plan is repealed. However, a plan participant can continue to choose the 10-year tax option or capital gain treatment for a lump-sum distribution that qualifies for the special treatment.

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