Page:United States Statutes at Large Volume 100 Part 3.djvu/675

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2483

"(A) the value of the individual's interests in qualified employer plans and individual retirement plans as of the date of the decedent's death (or, in the case of an election under section 2032, the applicable valuation date prescribed by such section), over "(B) the present value (as determined under rules prescribed by the Secretary as of the valuation date prescribed in subparagraph (A)) of an annuity for a term certain— "(i) with annual payments equal to the limitation of 0ortsubsection (c) (as in effect for the year in which the ^ death occurs), and "(ii) payable for a period equal to the life expectancy of the individual immediately before his death. "(e) RETIREMENT DISTRIBUTIONS.—For purposes of this section— "(1) IN GENERAL.—The term 'retirement distribution' means, with respect to any individual, the amount distributed during the taxable year under— "(A) any qualified employer plan with respect to which such individual is or was the employee, and "(B) any individual retirement plan. "(2) QuAUFiED EMPLOYER PLAN.—The term 'qualified employer plan' means— "(A) any plan described in section 401(a) which includes a trust exempt from tax under section 501(a), "(B) an annuity plan described in section 403(a), or ^'' "(C) an annuity contract described in section 4030k)). Such term includes any plan or contract which, at any time, has been determined by the Secretary to be such a plan or contract." (b) CLERICAL AMENDMENT.—The table of sections for chapter 43 is amended by adding at the end thereof the following new item: "Sec. 4981A. Tax on excess distributions from qualifled retirement plans." (c) EFFECTIVE DATES.—

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(1) IN GENERAL.—Except as provided in this subsection, the amendments made by this section shall apply to distributions made after December 31, 1986. (2) ESTATE TAX.—Section 4981A(d) of the Internal Revenue Code of 1986 (as added by subsection (a)) shall apply to the estates of decedents dying after December 31, 1986. (3) PLAN TERMINATIONS BEFORE 1987.—The amendments made by this section shall not apply to distributions before January 1, 1988, which are made on account of the termination of a qualified employer plan if such termination occurred before January 1, 1987.

SEC. 1134. TREATMENT OF LOANS. (a) $50,000 LIMITATION REDUCED BY BALANCE OF CERTAIN PRECED-

ING LOANS.—Clause (i) of section 72(p)(2)(A) (relating to exceptions for certain loans) is amended to read as follows: "(i) $50,000, reduced by the excess (if any) of— "(I) the highest outstanding balance of loans XliuniiJ, r from the plan during the 1-year period ending on the day before the date on which such loan was made, over "(II) the outstanding balance of loans from the s? i « plan on the date on which such loan was made, or".

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