Page:United States Statutes at Large Volume 102 Part 4.djvu/509

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3479

(A) by striking out "(by reason of the limitations of section 415)", and (B) by adding at the end thereof the following new sentence: "The amount allocated in the year of transfer shall not be less than the lesser of the maximum amount allowable under section 415 or Vs of the amount attributable to the securities acquired." (4) Subparagraph (B) of section 1132(c)(2) of the Reform Act is 26 USC 4980 amended by striking out "November 19, 1978" and inserting in note. lieu thereof "September 19, 1978". (5) Section 1132(c) of the Reform Act is amended by adding at the end thereof the followii^ new paragraph: "(5) SPECIAL RULE FOR EMPLOYEE STOCK OWNERSHIP PLANS.—

Section 4980(c)(3) of the Internal Revenue Code of 1986 (as added by subsection (a)) shall apply to reversions occurring after March 31, 1985." (6) Section 4980(c)(3) of the 1986 Code is amended by adding at the end thereof the following new subparagraphs: "(F) No CREDIT O DEDUCTION ALLOWED.—No Credit or R deduction shall be allowed under chapter 1 for any amount transferred to an employee stock ownership plan in a transfer to which this paragraph applies. "(G) AMOUNT TRANSFERRED TO INCLUDE INCOME THEREON,

ETC.—The amount transferred shall not be treated as meeting the requirements of subparagraphs (B) and (O unless amounts attributable to such amount also meet such requirements." (7) Section 4980(c)(3)(C) of the 1986 Code is amended by adding at the end thereof the following new sentence: "In the case of dividends on securities held in the suspense account, the requirements of this subparagraph are met only if the dividends are allocated to accounts of participants or paid to participants in proportion to their accounts, or used to repay loans used to purchase employer securities." (g) AMENDMENTS RELATED TO SECTION 1133 OF THE REFORM ACT.— Retirement. (I)(A) Section 4981A of the 1986 Code (as added by section 1133 of the Reform Act) is redesignated as section 4980A. (B) The table of sections for chapter 43 of the 1986 Code is amended by redesignating section 4981A as section 4980A. (2) Paragraph (1) of section 4980A(c) of the 1986 Code (as redesignated by paragraph (1)) is amended by striking out "$112,500 (adjusted at the same time and in the same manner as under section 415(d))" and inserting in lieu thereof "the greater of— "(A) $150,000, or "(B) $112,500 (adjusted at the same time and in the same manner as under section 415(d))." (3) Section 4980A(c)(2) of the 1986 Code (relating to exclusion of certain distributions), as redesignated by paragraph (1), is amended— (A) by striking out "employee's" in subparagraph (C) and inserting in lieu thereof "individual's", and (B) by adding after subp€u*agraph (D) the following new subparagraphs:

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