determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2019 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $500, such amount shall be rounded to the next lowest multiple of $500. . (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 chronically ill individual (within the meaning of section 7702B(c)(2), except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature), or (V) an individual not described in any of the preceding subclauses who is not more than 10 years younger than the employee. (iii) Special rule for children Subject to subparagraph (F), an individual described in clause (ii)(II) shall cease to be an eligible designated beneficiary as of the date the individual reaches majority and any remainder of the portion of the interest described in subparagraph (H)(iv) which exceeds the amount in effect under subparagraph (H)(i) as of such date shall be distributed within 5 years after such date. (iv) Time for determination of eligible designated beneficiary The