Page:United States Statutes at Large Volume 102 Part 4.djvu/506

 102 STAT. 3476

26 USC 72 note.

PUBLIC LAW 100-647—NOV. 10, 1988 (6) Section 72(q)(2) of the 1986 Code (relating to subsection not to apply to certain dispositions) is amended by inserting after subparagraph (G) the following new subparagraph: "CH) to which subsection (t) applies (without r^ard to paragraph (2) thereof)/'. (7) Subparagraph (D) of section 72(q)(2) and clause (iv) of section 72(t)(2)(A) of the 1986 (Jode are each amended by inserting "designated" before **beneficiary". (8) Paragraph (2) of section 72(o) of the 1986 Code (relating to additional tax if amount received before age 59V^) is hereby repealed. (9) Subparagraph (I) of section 402(e)(4) of the 1986 Code is amended by striking out "clause (ii) o f. (10) Section 26(b)(2) of the 1986 Code is amended— (A) by striking out ", (o)(2)," in subparagraph (Q, and (B) by striking out "408(f) (relating to additional tax on income from certain retirement accounts)" in subparagraph (D) and inserting in lieu thereof "72(t) (relating to 10percent addition£d tax on early distributions from qualified retirement plans)". ? (11) Section 1123(e)(2) of the Reform Act is amended— (A) by striking out "taxable", and (B) by inserting ", but only with respect to distributions from contracts described in section 403(b) of the Internal Revenue Code of 1986 which are attributable to assets other than assets held as of the close of the last year beginning before January 1, 1989" after "1988". (12) Section 1123(e) of the Reform Act is amended by adding at the end thereof the following new paragraph: "(5) SPECIAL RULE FOR DISTRIBUTIONS UNDER AN ANNUITY CON-

26 USC 72 note.

TRACT.—The amendments made by paragraphs (1), (2), and (3) of subsection (b) shall not apply to any distribution under an annuity contract if— "(A) as of March 1, 1986, payments were being made under such contract pursuant to a written election providing a specific schedule for the distribution of the taxpayer's interest in such contract, and "(B) such distribution is made pursuant to such written election." (13) Section 72(t) of the 1986 Code shall apply to any distribution without r^ard to whether such distribution is made without the consent of the participant pursuant to section 411(a)(ll) or section 417(e) of the 1986 Code, (d) AMENDMENTS RELATED TO SECTION 1124 OF THE REFORM ACT.—

26 USC 402 note. Handicapped P®^<)"s-

(1) Section 1124(a) of the Reform Act is amended to read as follows: "(a) IN GENERAL.—If an employee dies, separates from service, or becomes disabled before 1987 and an individual, trust, or estate receives a lump-sum distribution with respect to such employee after December 31, 1986, and before March 16, 1987, on account of such death, separation fh>m service, or disability, then, for purposes of the Internal Revenue Code of 1986, such individual, ^(tate, or trust may treat such distribution as if it were received in 1986." (2) Section 1124(b) of the Reform Act is amended— (A) by striking out "employee" each place it appears and inserting in lieu thereof individual, estate, or trust", and

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