is funded in whole or in part by forfeitures. . (b) Effective date The amendment made by subsection (a) shall apply to forfeitures allocated in accordance with section 401(k)(16) of the Internal Revenue Code of 1986 (as added by subsection (a)) before, on or after the date of enactment of this Act. 313. Treatment of custodial accounts on termination of section 403(b) plans Not later than six months after the date of enactment of this Act, the Secretary of the Treasury shall issue guidance to provide that, if an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph (A) of section 403(b)(7), the plan administrator or custodian may distribute an individual custodial account in kind to a participant or beneficiary of the plan and the distributed custodial account shall be maintained by the custodian on a tax-deferred basis as a section 403(b)(7) custodial account, 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. The guidance shall provide further (i) that the section 403(b)(7) status of the distributed custodial account is generally maintained if the custodial account thereafter adheres to the requirements of section 403(b) that are in effect at the time of the distribution of the account and (ii) that a custodial account would not be considered distributed to the participant or beneficiary if the employer has any material retained rights under the account (but the employer would not be treated as retaining material rights simply because the custodial account was originally opened under a group contract). Such guidance shall be retroactively effective for taxable years beginning after December 31, 2008. IV Defined benefit plan reforms 401. Cash balance (a) In general Section 414 of the Internal Revenue Code of 1986, as amended by this Act, is amended by adding at the end the following new subsection: (bb) Projected interest crediting rate For purposes