custodial account in kind to a participant or beneficiary of the plan, and (2) the distributed custodial account shall be maintained by the custodian on the same basis as a custodial account to which section 403(b)(7) of such Code applies, similar to the treatment of fully-paid individual annuity contracts under Revenue Ruling 2011–7, until amounts are actually paid to the participant or beneficiary. (b) Treatment of accounts The guidance issued under subsection (a) shall also provide that— (1) the status of the distributed custodial account under section 403(b)(7) of the Internal Revenue Code of 1986 is generally maintained if the custodial account thereafter adheres to the requirements of section 403(b) of such Code which are in effect at the time of the distribution of the account, and (2) a custodial account will not be considered distributed to the participant or beneficiary if the employer has any material retained rights under the account. For purposes of paragraph (2), an employer shall not be treated as retaining material rights over a custodial account solely because the custodial account was originally opened under a group contract. (c) Distribution upon termination (1) In general Paragraph (11) of section 403(b) is amended by striking or at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting , or , and by inserting after subparagraph (C) the following new subparagraph: (D) in the case of a termination of the plan under which contributions were made, without the establishment or maintenance of another plan under this subsection. . (2) Custodial accounts Section 403(b)(7)(A)(ii) is amended by striking before the employee dies and inserting before the termination of the plan under which contributions were made to the custodial account (without the establishment or maintenance of another plan under this subsection), or before the employee dies . (d) Effective date The guidance issued under subsections (a) and (b), and the amendments made by subsection (c),