Page:United States Statutes at Large Volume 100 Part 3.djvu/668

 100 STAT. 2476

PUBLIC LAW 99-514—OCT. 22, 1986

was m a i n t a i n e d by a corporation organized under the laws of the State of Nevada, the principal place of business of which is Denver, Colorado, and which filed for relief from creditors under the United States B a n k r u p t c y Code on August 28, 1986, the employee may t r e a t a l u m p s u m distribution received from such plan before June 30, 1987, as if it were received in 1986. " ' ^^ u j ^ - i u i s ...

PART IV—MISCELLANEOUS PROVISIONS SEC. 1131. ADJUSTMENTS TO SECTION 404 LIMITATIONS. (a)

ELIMINATION

OF

LIMIT

CARRYFORWARD

OF

SECTION

404(a)(3)(A).—Subparagraph (A) of section 404(a)(3) (relating to limits on deductible contributions to stock bonus and profit-sharing trusts) is amended to read as follows: "(A) L I M I T S O N DEDUCTIBLE CONTRIBUTIONS.—

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"(i) IN GENERAL.—In the taxable year w h e n paid, if the contributions a r e paid into a stock bonus or profits h a r i n g t r u s t, and if such taxable year ends within or with a taxable year of the t r u s t with respect to which the t r u s t is e x e m p t under section 501(a), in a n a m o u n t ^ot in excess of 15 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under the stock bonus or profit-sharing plan.


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"(ii)

CARRYOVER

OF

EXCESS

CONTRIBUTIONS.—Any

a m o u n t paid into the t r u s t in any taxable year in excess of the limitation of clause (i) (or the corresponding provision of prior law) shall be deductible in the succeeding taxable year s in order of time, b u t the a m o u n t so deductible under this clause in any 1 such succeeding taxable year together with the a m o u n t allowable under clause (i) shall not exceed 15 percent of the compensation otherwise paid or accrued during such taxable year to the beneficiaries under the plan.

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"(iii)

. - . •'

CERTAIN

RETIREMENT PLANS

EXCLUDED.—For

purposes of this subparagraph, the term 'stock bonus or profit-sharing t r u s t ' shall not include any t r u s t designed to provide benefits upon retirement and covering a period of years, if under the plan the a m o u n t s to be contributed by the employer can be determined actuarially as provided in paragraph (1).

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"(iv) 2 OR MORE TRUSTS TREATED AS 1 TRUST.—If


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..

the

contributions a r e m a d e to 2 or more stock bonus or profit-sharing t r u s t s, such t r u s t s shall be considered a single t r u s t for purposes of applying the limitations in this subparagraph.

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"(v) P R E - 8 7 LIMITATION CARRYFORWARDS.—


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"(I) IN GENERAL.—The limitation of clause (i) for any taxable year shall be increased by the unused pre-87 limitation carryforwards (but not to a n a m o u n t in excess of 25 percent of the compensation described in clause (i))..

"(II)

UNUSED

PRE-87

LIMITATION

CARRYFOR-

WARDS.—For purposes of subclause (I), the term 'unused pre-87 limitation carryforwards' means the a m o u n t by which the limitation of the first

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