Page:United States Statutes at Large Volume 102 Part 4.djvu/523

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3493

the participant's account which the employee elected to have reinvested under section 401(a)(28XB)." (6) Section 401(a)(28XB) of the 1986 Code is amended by adding at the end thereof the following new clause: "(v) COORDINATION WITH DISTRIBUTION RUI£S.—Any

distribution required by this subparagraph shall not be taken into account in determining whether— "(I) a subsequent distribution is a lump-sum distribution under section 402(e)(4)(A), or "(U) section 402(a)(5)(D)(iii) applies to a subsequent distribution."

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(k) AMENDMENTS RELATED TO SECTION 1176 OF THE REFORM ACT.—

(1) Section 401(a)(22) of the 1986 Code is amended by striking out "is not publicly traded" each place it appears and inserting in lieu thereof "is not readily tradable on an established (2) Section 401(a)(22) of the 1986 Code is amended by adding at the end thereof the following new sentence: "For purposes of the preceding sentence, subsections (b), (c), (m), and (o) of section 414 shall not apply except for determining whether stock of the employer is not readily tradable on an established msirket." (3) Section 4090X4) of the 1986 Code (relating to nonvoting common stock may be acquired in certain cases), as added by section 1176(b) of the Reform Act, is redesignated as paragraph (5). G) AMENDMENTS RELATED TO SECTION 1177 OF THE REFORM ACT.—

(1) Paragraph (2) of section 1177(b) of the Reform Act is 26 USC 38 note. amended by striking out "section 143(d)(3)(C)" and inserting in lieu thereof "section 146(d)(3)(C)". (2) Subsection (b) of section 1177 of the Reform Act is amended by striking out "made by this subtitle" and inserting in lieu thereof "made by section 1175". (3) If any newspaper corporation described in section 1177(b) Newspapers. of the Reform Act, as amended by this subsection, pays in cash a 26 USC 38 note. dividend within 60 days after the date of the enactment of this Act to the corporation's employee stock ownership plans and if a corporate resolution declaring such dividend was adopted before November 30, 1987, and such resolution specifies that such dividend shall be contingent upon passage by the Congress of technical corrections, then such dividend (to the extent the aggr^ate amount so paid does not exceed $3,500,000) shall be treated as if it had been declared and paid in 1987 for all purposes of the Internal Revenue Code of 1986. SEC. 1012. AMENDMENTS RELATED TO TITLE XII OF THE REFORM ACT. Corporations. (a) AMENDMENTS RELATED TO SECTION 1201 OF THE REFORM ACT.—

(I)(A) Subparagraph (C) of section 904(d)(2) of the 1986 Cbde is amended to read as follows: "(dO FiNANCLAL SERVICES INCOME.— "(i) IN GENERAL.—Except as otherwise provided in this subparagraph, the term 'financial services income' means any income which is received or accrued by any person predominantly engaged in the active conduct of a banking, insurance, financing, or similar business, and which is— "(1) described in clause (ii).

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