Page:United States Statutes at Large Volume 100 Part 3.djvu/662

 100 STAT. 2470

PUBLIC LAW 99-514—OCT. 22, 1986 (A) IN GENERAL.—Section 402(a)(6) (relating to special rollover rules) is amended by adding a t the end thereof the following new subparagraph: "(H) SPECIAL RULE FOR FROZEN DEPOSITS.—

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"(i) IN GENERAL.—The 60-day period described in paragraph (5)(C) shall not— "(I) include any period during which the a m o u n t transfer r e d to the employee is a frozen deposit, or "(II) end earlier than 10 days after such a m o u n t ceases to be a frozen deposit. "(ii) FROZEN DEPOSIT.—For purposes of t h i s subparagraph, the term 'frozen deposit' means any deposit which may not be w i t h d r a w n because of— "(I) the b a n k r u p t c y or insolvency of any financial institution, or "(II) any requirement imposed by the State in which such institution is located by reason of the b a n k r u p t c y or insolvency (or t h r e a t thereof) of 1 or more financial institutions in such State. " ^g^

INDIVIDUAL

RETIREMENT

PLANS.—Section

408(d)(3)

(relating to rollover contribution) is amended by adding a t the end thereof the following n e w subparagraph: "(F) FROZEN DEPOSITS.—For purposes of this paragraph, rules similar to the rules of section 402(a)(6)(H) (relating to frozen deposits) shall apply." (g) N E T UNREALIZED APPRECIATION.—Section 402(e)(4)(J) (relating to unrealized appreciation of employer securities) is amended by adding a t the end thereof the following new sentence: "To the e x t e n t provided by the Secretary, a tax p a y e r may elect before any distribution not to h a v e this paragraph apply with respect to such distribution." (h) EFFECTIVE D A T E S. —

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments m a d e by this section shall apply to a m o u n t s distributed after December 31, 1986, in tax a b l e year s ending after such date. (2) SUBSECTION (c).—

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(A) SUBSECTION (C)(1).—The amendment tion (c)(1) shall apply to individuals whose date is after July 1, 1986. (B) SUBSECTION (C)(2).—The amendment tion (c)(2) shall apply to individuals whose date is after December 31, 1986.

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(C) SPECIAL RULE FOR AMOUNTS NOT RECEIVED AS A N N U -

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ITIES.—In the case of any plan not described in section 72(e)(8)(D) of the I n t e r n a l Revenue Code of 1986 (as added by subsection (c)(3)), the amendments m a d e by subsection (c)(3) shall apply to a m o u n t s received after July 1, 1986. (3) SPECIAL RULE FOR INDIVIDUALS W H O ATTAINED AGE SO BEFORE J A N U A R Y 1, 1986. —

(A) IN GENERAL.—In the case of a l u m p s u m distribution to which this paragraph applies— (i) the existing capital gains provisions shall continue to apply, and (ii) the requirement of subparagraph (B) of section ••''•-• 402(e)(4) of the I n t e r n a l Revenue Code of 1986 (as

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