Page:United States Statutes at Large Volume 100 Part 3.djvu/673

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2481

the meaning of section 411(d)(3) of the Internal Revenue Code of 1986) of the plan. (4) TRANSITION RULE FOR CERTAIN TERMINATIONS.—

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(A) IN GENERAL.—In the case of a taxpayer to which this paragraph applies, the amendments made by this section shall not apply to any termination occurring before the date which is 1 year after the date of the enactment of this Act. (B) TAXPAYERS TO WHOM PARAGRAPH APPLIES.—This paragraph shall apply to— (i) a corporation incorporated on June 13, 1917, which has its principal place of business in Bartlesville, Oklahoma, (ii) a corporation incorporated on January 17, 1917, which is located in Coatesville, Pennsylvania, (iii) a corporation incorporated on January 23, 1928, which has its principal place of business in New York, New York, (iv) a corporation incorporated on April 23, 1956, which has its principal place of business in Dallas, Texas, and (v) a corporation incorporated in the State of Nevada, the principal place of business of which is in Denver, Colorado, and which filed for relief from creditors under the United States Bankruptcy Code on August 28, 1986.

SEC. 1133. TAX ON EXCESS DISTRIBUTIONS.

(a) GENERAL RULE.—Chapter 43 (relating to tax on pension, etc., plans) is amended by adding at the end thereof the following new section: "SEC. 4981A. TAX ON EXCESS DISTRIBUTIONS FROM QUALIFIED RETIREMENT PLANS.

"(a) GENERAL RULE.—There is hereby imposed a tax equal to 15 percent of the excess distributions with respect to any individual during any calendar year. "(b) LIABILITY FOR TAX.—The individual with respect to whom the excess distributions are made shall be liable for the tax imposed by subsection (a). The amount of the tax imposed by subsection (a) shall be reduced by the amount (if any) of the tax imposed by section 72(t) to the extent attributable to such excess distributions. "(c) EXCESS DISTRIBUTIONS.—For purposes of this section— "(1) IN GENERAL.—The term 'excess distributions' means the aggregate amount of the retirement distributions with respect to any individual during any calendar year to the extent such amount exceeds $112,500 (adjusted at the same time and in the same manner as under section 415(d)). "(2) EXCLUSION OF CERTAIN DISTRIBUTIONS.—The following distributions shall not be taken into account under paragraph (1): "(A) Any retirement distribution with respect to an individual made after the death of such individual. •M "(B) Any retirement distribution with respect to an individual payable to an alternate payee pursuant to a qualified domestic relations order (within the meaning of ' section 414(p)) if includible in income of the alternate payee.

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