; and (2) by adding at the end the following: (D) Notwithstanding anything to the contrary in subparagraph (C), the term qualified plan shall also include a custodial account meeting the requirements of section 403(b)(7) of the Internal Revenue Code of 1986 if: (i) the arrangement is subject to title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq.), or (ii) any employer making such arrangement available agrees in writing to serve as a fiduciary for the arrangement with respect to the selection of the arrangement’s investments. . 119. Eligibility for participation in retirement plans An individual shall not be precluded from participating in an eligible deferred compensation plan by reason of having received a distribution under section 457(e)(9) of the Internal Revenue Code of 1986, as in effect prior to the enactment of the Small Business Job Protection Act of 1996. 120. Small immediate financial incentives for contributing to a plan (a) In general Subparagraph (A) of section 401(k)(4) is amended by inserting (other than a de minimis financial incentive) after any other benefit . (b) Section 403 (b) plans Subparagraph (A) of section 403(b)(12), as amended by this Act, is further amended by adding at the end the following: A plan shall not fail to satisfy clause (ii) solely by reason of the offering of a de minimis financial incentive for employees to elect to have the employer make contributions pursuant to a salary reduction agreement. . (c) Exemption from prohibited transaction rules Subsection (d) of section 4975 is amended by striking or at the end of paragraph (22), by striking the period at the end of paragraph (23) and inserting , or , and by adding at the end the following new paragraph: (24) the provision of a de minimis financial incentive described in section 401(k)(4)(A) or 403(b)(12)(A). . (d) Amendment of Employee Retirement Income Security Act of 1974 Subsection (b) of section 408 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1108(b) ) is