Page:United States Statutes at Large Volume 100 Part 3.djvu/670

 100 STAT. 2478

PUBLIC LAW 99-514—OCT. 22, 1986

"SEC. 4972. TAX ON NONDEDUCTIBLE CONTRIBUTIONS TO QUALIFIED EMPLOYER PLANS.

"(a) TAX IMPOSED.—In the case of any qualified employer plan, there is hereby imposed a tax equal to 10 percent of the nondeductible contributions under the plan (determined as of the close of the taxable year of the employer). "0?) EMPLOYER LIABLE FOR TAX.—The tax imposed by this section shall be paid by the employer making the contributions. "(c) NONDEDUCTIBLE CONTRIBUTIONS.—For purposes of this section, the term 'nondeductible contributions' means, with respect to any qualified employer plan, the sum of— "(1) the excess (if any) of— "(A) the amount contributed for the taxable year by the employer to or under such plan, over "(B) the amount allowable as a deduction under section 404 for such contributions, and on tt^2) the amount determined under this subsection for the preceding taxable year reduced by the sum of^ "(A) the portion of the amount so determined returned to the employer during the taxable year, and "(B) the portion of the amount so determined deductible under section 404 for the taxable year. "(d) DEFINITIONS.—For purposes of this section— "(1) QUALIFIED EMPLOYER PLAN.—The term 'qualified employer plan' means— "(A) any plan meeting the requirements of section 401(a) which includes a trust exempt from the tax under section '' 501(a), P "(B) an annuity plan described in section 403(a), and ll\r, "^^^ ^^y simplified employee pension (within the mean.;^j" ing of section 408(k)). "(2) EMPLOYER.—In the case of a plan which provides contributions or benefits for employees some or all of whom are self-employed individuals within the meaning of section 401(c)(l), the term 'employer' means the person treated as the employer under section 401(c)(4)," (2) CLERICAL AMENDMENT.—The table of sections for chapter 43 is amended by inserting after the item relating to section 4971 the following item: "Sec. 4972. Tax on nondeductible contributions to qualified employer plans."

(d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1986. SEC. 1132. EXCISE TAX ON REVERSION OF QUALIFIED PLAN ASSETS TO EMPLOYER.

(a) GENERAL RULE.—Chapter 43 (relating to qualified pension, etc., plans) is amended by adding at the end thereof the following new section: "SEC. 4980. TAX ON REVERSION OF QUALIFIED PLAN ASSETS TO EMPLOYER.

"(a) IMPOSITION OF TAX.—There is hereby imposed a tax of 10 percent of the amount of any employer reversion from a qualified plan.

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