Page:United States Statutes at Large Volume 102 Part 4.djvu/513

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3483

"(C) which provides for a series of substantially equal periodic payments (to be made not less frequently than annually) during the annuity period." (j) AMENDMENTS RELATED TO SECTION 1136 OP THE REFORM ACT.—

(1) Section 401(a)(27) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(B) PLAN MUST DESIGNATE TYPE.—In the case of a plan which is intended to be a money purchase pension plan or a profit-sharing plan, a trust forming part of such plan shall not constitute a qualified trust under this subsection unless the plan designates such intent at such time and in such manner as the Secretary may prescribe." (2) Section 401(a)(27) of the 1986 Code is amended by striking out "(27)" and inserting in lieu thereof: "(27) DETERMINATIONS AS TO PROFIT-SHARING PLANS.— "(A) CONTRIBUTIONS NEED NOT BE BASED ON PROFITS.—". (k) AMENDMENT RELATED TO SECTION 1139 OF THE REFORM ACT.—

Clause (i) of section 1139(d)(2)(A) of the Reform Act is amended by 26 USC 4ii note, striking out "before January" and inserting in lieu thereof "after January". (1) AMENDMENT RELATED TO SECTION 1145 OP THE REFORM ACT.—

Subparagraph (E) of section 401(a)(ll) of the 1986 Code (relating to cross reference) is redesignated as subparagraph (F). (m) AMENDMENTS RELATED TO SECTION 1147 OP THE REFORM ACT.—

(1) Subparagraph (C) of section 770igXl) of the 1986 Code (relating to tax treatment of Federal Tiirift Savings Fund) is amended by inserting ", section 401(k)(4)(B)," after "paragraph (2)". (2) Section 8440(a)(3) of title 5, United States Code, is amended by inserting ", 401(k)(4)(B) of such Code," after "subsection (b)". SEC. lOllB. AMENDMENTS RELATED TO SUBTITLES B AND C OF TITLE XI OF THE REFORM ACT. (a) AMENDMENTS RELATED TO SECTION 1151 OP THE REFORM ACT.—

(1) Paragraph (2) of section 89(a) of the 1986 Code (relating to year of inclusion) is amended to read as follows: "(2) YEAR OF INCLUSION.—

"(A) IN GENERAL.—Except as provided in subparagraph (B)"(i) any amount included in gross income under paragraph (1) shall be taken into account for the taxable year of the employee with or within which the plan year ends, and "(ii) any deduction of the employer attributable to such amount shall be allowable for the taxable year of the employer with or within which the plan year ends. "(B)

y;

ELECTION TO DELAY INCLUSION FOR i YEAR.—If an

employer maintaining a plan with a plan year ending after September 30 and on or before December 31 of a calendar year elects the application of this subparagraph— "(i) amounts included in gross income under paragraph (1) with respect to employees of such employer shall be taken into account for the taxable year of the employee following the taxable year determined under subparagraph (A), but "(ii) any deduction of the employer which is attributable to such amounts shall be allowable for the tax-

�