Page:United States Statutes at Large Volume 102 Part 4.djvu/729

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3699

employer, except that if an election is made under paragraph (4)(B), subparagraph (A) shall apply to such plan. "(ii) SPECIAL RULE.—If this subparagraph applies, the amounts contributed to or under the plan by each employer who maintains the plan (for the portion of the taxable year included within a plan year) shall be considered not to exceed any such limitation if the anticipated employer contributions for such plan year (determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary) do not exceed such limitation. If such anticipated contributions exceed such a limitation, the portion of each such employer's contributions which is not deductible under section 404 shall be determined in accordance with regulations prescribed by the Secretary." (c) (CONFORMING AMENDMENT.—Section 413(c) of the 1986 (Dode is amended by striking out the last sentence and by inserting after paragraph (6) the following new paragraph: "(7) ALLOCATIONS.—

"(A) IN GENERAL.—Except as provided in subparagraph (B), allocations of amounts under paragraphs (4), (5), and (6) among the employers maintaining the plan shall not be inconsistent with regulations prescribed for this purpose by the Secretary. "(B) ASSET AND LIABIUTIES OF PLAN.—For purposes of applying paragraphs (4)(A) and (6)(A), the assets and liabilities of each plan shall be treated as the assets and liabilities which would be allocated to a plan maintained by the employer if the employer withdrew from the multiple employer plan." (d) EFFECTIVE DATE.—Except as provided in paragraph (2), the 26 USC 413 note. amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. SEC. 6059. APPLICATION OF SECTION 415 LIMITATIONS TO POLICE AND FIREFIGHTERS.

(a) IN GENERAL.—Clause (ii) of section 415(b)(2)(H) of the 1986 Code is amended by striking out "20 years" and inserting in lieu thereof "15 years". (b) EFFECTIVE DATE.—The amendment made by this section shall apply as if included in the amendments made by section 1106(b)(2) of the Reform Act. SEC. 6060. EXCISE TAX ON DISPOSITION OF STOCK BY AN ESOP NOT TO APPLY TO CERTAIN FORCED DISPOSITIONS.

(a) IN GENERAL.—Subsection (e) of section 4978A of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(4) FORCED DISPOSITION OCCURRING BY OPERATION OF A STATE

LAW.—Any forced disposition of qualified employer securities by the employee stock ownership plan of a corporation occurring by operation of a State law shall not be treated as a disposition. TTiis paragraph shall only apply to securities which, at the time such securities were purchased by the employee stock ownership plan, were regularly traded on an established securities market."

26 USC 415 note.

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