Page:United States Statutes at Large Volume 102 Part 4.djvu/505

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3475

sum distribution" and inserting in lieu thereof "for purposes of such Code". (14) Clause (i) of section 1122(h)(3)(C) of the Reform Act is' 26 USC 402 note. amended— (A) by striking out "individual" and inserting in lieu thereof "employee", and (B) by inserting "or by an individual, estate, or trust with respect to such an employee" after "1986". (15) Section 1122(h)(5) of the Reform Act is amended— (A) by striking out "individual" and inserting in lieu thereof "employee", (B) by inserting "and by including in gross income the zero bracket amount in effect under section 63(d) of such Code for such years" after "1986" in the last sentence, and (C) by adding at the end thereof the following new sentence: "This paragraph shall also apply to an individual, estate, or trust which receives a distribution with respect to an employee described in this paragraph." (16) Sections 406(c) and 407(c) of the 1986 Code are each amended— (A) by striking out "subsections (a)(2) and (e) of section 402, and section 403(a)(2)" and inserting in lieu thereof "section 402(e)", and (B) by striking out "OP CAPITAL GAIN PROVISIONS AND" in

the heading thereof. (c) AMENDMENTS RELATED TO SECTION 1123 OF THE REFORM ACT.—

(1) Subparagraph (A) of section 72(t)(2) of the 1986 Code (relating to subsection not to apply to certain distributions) is amended by striking out "on account of early retirement under the plan" in clause (v). (2) Subparagraph (C) of section 72(t)(2) of the 1986 Code (relating to certain plans) is amended to read as follows: "(C) EXCEPTIONS FOR DISTRIBUTIONS PROM EMPLOYEE STOCK

OWNERSHIP PLANS.—Any distribution made before January 1, 1990, to an employee from an employee stock ownership plan (as defined in section 4975(e)(7)) or a tax credit employee stock ownership plan (as defined in section 409) if— "(i) such distribution is attributable to assets which have been invested in employer securities (within the meaning of section 409(1)) at all times during the 5plan-year period preceding the plan year in which the distribution is made, and "(ii) at all times during such period the requirements of sections 401(a)(28) and 409 (as in effect at such times) are met with respect to such employer securities." (3) Subparagraph (A) of section 72(t)(3) of the 1986 Code (relating to certain exceptions not to apply to individual retirement plans) is amended by striking out "and (C)" and inserting m lieu thereof "(C), and (D)". (4) Subparagraphs (D) and (G) of section 72(q)(2) of the 1986 Code are each amended by striking out the period at the end thereof and inserting in lieu thereof a comma. (5) Subparagraph (B) of section 72(q)(3) of the 1986 Ckxle (relating to change in substantially equal payments) is amended by striking out "employee" each place it appears and inserting in lieu thereof "taxpayer".

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