Page:United States Statutes at Large Volume 100 Part 3.djvu/672

 100 STAT. 2480

PUBLIC LAW 99-514—OCT. 22, 1986

transferred which is not allocated (by reason of the limitations of section 415) under the plan to accounts of particiMJ.. pants in the plan year in which the transfer occurs— "(i) is credited to a suspense account and allocated from such account to accounts of participants no less rapidly than ratably over a period not to exceed 7 years, and "(ii) when allocated to accounts of participants under the plan, is treated as an employer contribution for purposes of section 415(c), except that— '• • • ^ "(I) the annual addition (as determined under section 415(c)) attributable to each such allocation '' ' shall not exceed the value of such securities as of the time such securities were credited to such suspense account, and ! ' "(II) no additional employer contributions shall be permitted to an employee stock ownership plan described in subparagraph (A) of the employer before the allocation of such amount, '"' "(D) PARTICIPANTS.—The requirements of this subparagraph are met if at least half of the participants in the ]" ' qualified plan are participants in the employee stock ownership plan (as of the close of the 1st plan year for !., •, which an allocation of the securities is required). "(E) APPLICABLE AMOUNT.—For purposes of this para,,. 5,. graph, the term 'applicable amount' means any amount which— "(i) is transferred after March 31, 1985, and before •.. January 1, 1989, or "(ii) is transferred after December 31, 1988, pursuant to a termination which occurs after March 31, 1985, and before January 1, 1989." (b) CLERICAL AMENDMENT.—The table of sections for chapter 43 is amended by adding at the end thereof the following new item: "Sec. 4980. Tax on reversion of qualified plan assets to employer." (c) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendments made by this section shall apply to reversions occurring after December 31, 1985. -j^ (2) EXCEPTION WHERE TERMINATION DATE OCCURRED BEFORE ^. JANUARY 1, 1986.—

(A) IN GENERAL.—Except as provided in subparagraph (B), ij,u^ the amendments made by this section shall not apply to any reversion after December 31, 1985, which occurs pursuant

to a plan termination where the termination date is before 'i,, January 1, 1986. ,,•''

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(B) ELECTION TO HAVE AMENDMENTS APPLY.—A corpora-

tion may elect to have the amendments made by this section apply to any reversion after 1985 pursuant to a plan termination occurring before 1986 if such corporation was incorporated in the State of Delaware in March, 1978, and became a parent corporation of the consolidated group on September 19, 1978, pursuant to a merger agreement recorded in the State of Nevada on November 19, 1978.

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(3) TERMINATION DATE.—For purposes of paragraph (2), the

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term "termination date" is the date of the termination (within

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