or distribution. (B) Limitation This paragraph shall not apply to any amount described in subparagraph (A) received by an individual from a portable retirement and investment account if, at any time during the 1-year period ending on the day of such receipt, such individual received any other amount described in subparagraph (A) from a portable retirement and investment account which was not includible in the individual’s gross income because of the application of this paragraph. (4) Transfer of account incident to divorce The transfer of an individual’s interest in a portable retirement and investment account to an individual’s spouse or former spouse under a divorce or separation instrument described in subparagraph (A) of section 71(b)(2) shall not be considered a taxable transfer made by such individual notwithstanding any other provision of this subtitle, and such interest shall, after such transfer, be treated as a portable retirement and investment account with respect to which such spouse is the account beneficiary. (5) Treatment after death of account beneficiary (A) Treatment if designated beneficiary is spouse If the account beneficiary’s surviving spouse acquires such beneficiary’s interest in a portable retirement and investment account by reason of being the designated beneficiary of such account at the death of the account beneficiary, such portable retirement and investment account shall be treated as if the spouse were the account beneficiary. (B) Other cases If, by reason of the death of the account beneficiary, any person acquires the account beneficiary’s interest in a portable retirement and investment account in a case to which subparagraph (A) does not apply— (i) such account shall cease to be a portable retirement and investment account as of the date of death, and (ii) an amount equal to the fair market value of the assets in such account on such date shall be includible if such person is not the estate of such beneficiary, in such person’s gross income for the taxable year which