Page:United States Statutes at Large Volume 100 Part 3.djvu/674

 100 STAT. 2482

PUBLIC LAW 99-514—OCT. 22, 1986

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"(C) Any retirement distribution with respect to an individual which is attributable to the employee's investment in the contract (as defined in section 72(f)). is^" "(D) Any retirement distribution to the extent not included in gross income by reason of a rollover contribution. Any distribution described in subparagraph (B) shall be treated as a retirement distribution to the person to whom paid for purposes of this section. "(3) AGGREGATION OF PAYMENTS.—If retirement distributions with respect to any individual during any calendar year are ri received by the individual and 1 or more other persons, all such K distributions shall be aggregated for purposes of determining the amount of the excess distributions for the calendar year. j;»i

"(4) SPECIAL RULE WHERE TAXPAYER ELECTS INCOME AVERAG-

ING.—If the retirement distributions with respect to any individual during any calendar year include a lump sum distribution to which an election under section 402(e)(4)(B) applies— 'i "(A) paragraph (1) shall be applied separately with respect to such lump sum distribution and other retirement distributions, and ^^, "(B) the limitation under paragraph (1) with respect to such lump sum distribution shall be equal to 5 times the J amount of such limitation determined without regard to .j' this subparagraph. "(5) SPECIAL RULE FOR ACCRUED BENEFITS AS OF AUGUST i, 1986.—

"(A) IN GENERAL.—If the employee elects on a return filed ,.o*'i ( for a taxable year ending before January 1, 1989 to have ^Q.^ x. this paragraph apply, the portion of any retirement distribution which is attributable (as determined under rules prescribed by the Secretary) to the accrued benefit of an -iSii 'i employee as of August 1, 1986, shall be taken into account for purposes of paragraph (1), but no tax shall be imposed ?, r cj i under this section with respect to such portion of such IfcAibit' distribution. "(B) LIMITATION.—An employee may not make an election under subparagraph (A) unless the accrued benefit of such employee as of August 1, 1986, exceeds $562,500. "(C) TAXPAYER NOT MAKING ELECTION.—If an employee

does not elect the application of this paragraph, paragraph (1) shall be applied by substituting $150,000 for such dollar limitation unless such dollar limitation is greater than $150,000. "(d) INCREASE I N ESTATE TAX IF INDIVIDUAL DIES WITH EXCESS ACCUMULATION.—

"(1) IN GENERAL.—The tax imposed by chapter 11 with respect to the estate of any individual shall be increased by an amount 31 equal to 15 percent of the individual's excess retirement i I accumulation. nf "(2) No CREDIT ALLOWABLE.—No credit shall be allowable under section 2010 with respect to any portion of the tax imposed by chapter 11 attributable to the increase under paragraph (1).

"(3) EXCESS RETIREMENT ACCUMULATION.—For purposes of

5; paragraph (1), the term 'excess retirement accumulation' means the excess (if any) of—

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