beneficiary is the surviving spouse of the employee— (I) the date on which the distributions are required to begin under clause (v)(III) shall not be earlier than the date on which the employee would have attained age 70 1/2 , and (II) if the surviving spouse dies before the distributions to such spouse begin, this subparagraph shall be applied as if the surviving spouse were the employee. (vii) Rules upon death of eligible designated beneficiary If an eligible designated beneficiary dies before the portion of the employee's interest to which clause (i) applies which is payable to (or for the benefit of) such eligible designated beneficiary is entirely distributed, the exception under clause (v) shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within 5 years after the death of such beneficiary. (viii) Coordination with individual retirement plans For purposes of applying the provisions of this subparagraph and subsections (a)(6) and (b)(3) of section 408, individual retirement plans shall be treated as defined contribution plans in determining the aggregate account balances to the credit of the employee under all defined contribution plans and the amount required to be distributed to each beneficiary under such provisions. . (2) Definition of eligible designated beneficiary Section 401(a)(9)(E) of such Code is amended to read as follows: (E) Definitions and rules relating to designated beneficiary For purposes of this paragraph— (i) Designated beneficiary The term designated beneficiary means any individual designated as a beneficiary by the employee. (ii) Eligible designated beneficiary The term eligible designated beneficiary means, with respect to any employee, any designated beneficiary who is— (I) the surviving spouse of the employee, (II) subject to clause (iii), a child of the employee who has not reached majority (within the meaning of subparagraph (F)), (III) disabled (within the meaning of section 72(m)(7)), (IV) a