; authority To transfer lesser amounts (1) Cap Sections 401(a)(31)(B)(ii) and 411(a)(11)(A) of the Internal Revenue Code of 1986 and section 203(e)(1) of the Employee Retirement Income Security Act of 1974 are each amended by striking $5,000 and inserting $6,000 . (2) Lesser amounts Subparagraph (B) of section 401(a)(31) of such Code is amended by adding at the end the following new clauses: (iii) Treatment of lesser amounts In the case of a trust which is part of an eligible plan, such trust shall not be a qualified trust under this section unless such plan provides that, if a participant in the plan separates from the service covered by the plan and the nonforfeitable accrued benefit described in clause (ii) is not in excess of $1,000, the plan administrator shall (either separately or as part of the notice under section 402(f)) notify the participant that the participant is entitled to such benefit or attempt to pay the benefit directly to the participant. (iv) Transfers to Retirement Savings Lost and Found or Treasury If, after a plan administrator takes the action required under clause (iii), the participant does not— (I) within 6 months of the notification under such clause, make an election under subparagraph (A) or elect to receive a distribution of the benefit directly, or (II) accept any direct payment made under such clause within 6 months of the attempted payment, the plan administrator shall transfer the amount of such benefit to the Director of the Retirement Savings Lost and Found in accordance with section 4(b)(1) of the Retirement Savings Lost and Found Act of 2018 or to an individual retirement account (as defined in section 408(a)) established by the Secretary on behalf of the individual. (v) Income tax treatment of transfers to Retirement Savings Lost and Found For purposes of determining the income tax treatment of transfers to the Director of the Retirement Savings Lost and Found under clause (iv)— (I) such a transfer shall be treated as a transfer to an individual retirement plan under