Page:United States Statutes at Large Volume 102 Part 4.djvu/512

 102 STAT. 3482 26 USC 4980A note.

PUBLIC LAW 100-647—NOV. 10, 1988 (8) Paragraph (1) of section 1133(c) of the Reform Act is amended by inserting ", other than a distribution with respect to a decedent dying before January 1, 1987" after "1986". (9) Section 4980A(d)(3)(A) of the 1986 Code is amended by inserting "(other than as a beneficiary, determined after application of paragraph (5))" after "the individual's interests. (10) Section 691(c)(l) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(C) EXCESS RETIREMENT ACCUMULATION TAX.—For purposes of this subsection, no deduction shall be allowed for the portion of the estate tax attributable to the increase in such tax under section 4980A(d)." (11) Section 2053(c)(l)(B) of the 1986 Code is amended by adding at the end thereof the following new sentence: "This subparagraph shall not apply to any increase in the tax imposed by this chapter by reason of section 4980A(d)." (12) Section 6018(a) of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(5) RETURN REQUIRED IF EXCESS RETIREMENT ACCUMULATION

TAX.—The executor shall make a return with respect to the estate tax imposed by subtitle B in any case where such tax is increased by reason of section 4980A(d)." (h) AMENDMENTS RELATED TO SECTION 1134 OF THE REFORM ACT.—

(1) Section 72(p)(3)(A) of the 1986 Code (relating to denial of interest deductions in certain cases) is amended by inserting "to which paragraph (1) does not apply by reason of paragraph (2) during the period" after "loan". (2) Subparagraph (B) of section 72(p)(3) of the 1986 Code is amended to read as follows: "(B) PERIOD TO WHICH SUBPARAGRAPH (A) APPLIES.—For

purposes of subparagraph (A), the period described in this subparagraph is the period— "(i) on or after the 1st day on which the individual to whom the loan is made is a key employee (as defined in section 416(i)), or "(ii) such loan is secured by amounts attributable to elective deferrals described in subparagraph (A) or (C) of section 402(g)(3)." (i) AMENDMENTS RELATED TO SECTION 1135 OF THE REFORM ACT.—

(1) Subparagraph (A) of section 72(u)(l) of the 1986 Code (relating to annuity contracts not held by natural persons) is amended by inserting "(other than subchapter D " after "subtitle". (2) Subparagraph (D) of section 72(u)(3) of the 1986 Code (relating to exceptions) is amended by striking out "until such time as the employee separates from service" and inserting in lieu thereof "until all amounts under such contract are distributed to the employee for whom such contract was purchased or the employee's beneficiary". (3) Subparagraphs (D) and (E) of section 72(u)(3) of the 1986 dkxle (relating to exceptions) are each amended by striking out "which". (4) Paragraph (4) of section 72(u) of the 1986 Code is amended by striking out "and" at the end of subparagraph (A), by striking out the period at the end of subparagraph (B) and inserting in heu thereof ", and", and by adding at the end thereof the following new subparagraph:

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