Page:United States Statutes at Large Volume 102 Part 4.djvu/511

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3481

(B) Section 4980A(c) of the 1986 Code, as redesignated by paragraph (1), is amended by striking out paragraph (5). (5) Section 4980A(d) of the 1986 Code (relating to increase in estate tax if individual dies with excess accumulation), as redesignated by paragraph (1), is amended— (A) by striking out "section 2010" in paragraph (2) and inserting in lieu thereof "chapter 11", and (B) by adding at the end thereof the following new paragraphs: "(4)

RULES FOR COMPUTING EXCESS RETIREMENT ACCUMULA-

TION.—The excess retirement accumulation of an individual shall be computed without regard to— "(A) any community property law, "(B) the value of— "(i) amounts payable to an alternate payee pursuant to a qualified domestic relations order (within the meaning of section 414(p)) if includible in income of the alternate payee, and "(ii) the individual's investment in the contract (as defined in section 72(f)), and "(C) the excess (if any) of— "(i) any interests which are payable immediately after death, over "(ii) the value of such interests immediately before death. "(5) ELECTION BY SPOUSE TO HAVE EXCESS DISTRIBUTION RULE APPLY.—

"(A) IN GENERAL.—If the spouse of an individual is the beneficiary of all of the interests described in paragraph (3)(A), the spouse may elect— "(i) not to have this subsection apply, and "(ii) to have this section apply to such interests and any retirement distribution attributable to such interests as if such interests were the spouse's. "(B) D E MINIMIS EXCEPTION.—If 1 or more persons other than the spouse are beneficiaries of a de minimis portion of the interests described in paragraph (3)(A)— "(i) the spouse shall not be treated as failing to meet the requirements of subparagraph (A), and "(ii) if the spouse makes the election under subparagraph (A), this section shall not apply to such portion or any retirement distribution attributable to such portion." (6) Subparagraph (B) of section 4980A(d)(3) of the 1986 Code, as redesignated by paretgraph (1), is amended to read as follows: "(B) the present value (as determined under rules prescribed by the Secretary as of the valuation date prescribed in subparagraph (A)) of a single life annuity with annual payments equal to the limitation of subsection (c) (as in effect for the year in which death occurs and as if the individual had not died)." (7) Section 2013 of the 1986 Code (relating to credit for tax on prior transfer) is amended by adding at the end thereof the following new subsection: "(g) TREATMENT OF ADnmoNAL TAX UNDER SECTION 4980A.—For purposes of this section, the estate tax paid shall not include any portion of such tax attributable to section 4980A(d)."

�