Page:United States Statutes at Large Volume 106 Part 1.djvu/346

 106 STAT. 314 PUBLIC LAW 102-318—JULY 3, 1992 in subparagraph (A) (determined without regard to sections 402(c) and 403(a)(4)). "(C) ELIGIBLE ROLLOVER DISTRIBUTION.—For purposes of this paragraph, the term 'eligible rollover distribution' has the meaning given such term by section 402(f)(2)(A). "(D) ELIGIBLE RETIREMENT PLAN.— For purposes of this paragraph, the term 'eligible retirement plan' has the meaning given such term by section 402(c)(8)(B), except that a QuaUfied trust shall be considered an eligible retirement plan only if it is a defined contribution plan, the terms of which permit the acceptance of rollover distributions." 26 USC 404. (2) EMPLOYEE'S ANNUITIES.- Paragraph (2) of section 404(a) (relating to employee's annuities) is amended by striking "and (27)" and inserting "(27), and (31)". (3) ANNUITIES PURCHASED BY CHARITIES AND PUBLIC 26 USC 403. SCHOOLS.— Paragraph (10) of section 403(b) (relating to distribution requirements) is amended by striking "section 401(a)(9)" and inserting "sections 401(a)(9) and 401(a)(31)". (b) WITHHOLDING ON ELIGIBLE ROLLOVER DISTRIBUTIONS WHICH ARE NOT ROLLED OVER. — 26 USC 3405. (1) IN GENERAL.— Section 3405 (relating to special rules for pensions, annuities, and certain other deferred income) is amended by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f) and by inserting after subsection (b) the following new subsection: "(c) ELIGIBLE ROLLOVER DISTRIBUTIONS. — "(1) IN GENERAL.—In the case of any designated distribution which is em eligible rollover distribution— "(A) subsections (a) and (b) shall not applv, and "(B) the payor of such distribution shall withhold from such distribution an amount equal to 20 percent of such distribution. "(2) EXCEPTION. — Paragraph (I)(B) shall not apply to any distribution if the distributee elects under section 401(a)(31)(A) to have such distribution paid directly to an eligible retirement plan. "(3) ELIGIBLE ROLLOVER DISTRIBUTION.—For purposes of this subsection, the term 'eligible rollover distribution' has the meaning given such term by section 402(f)(2)(A) (or in the case of an annuity contract under section 403(b), a distribution from such contract described in section 402(f)(2)(A))." (2) CONFORMING AMENDMENTS.— (A) Section 3405(a)(l) is amended by striking "subsection (d)(2)" and inserting "subsection (e)(2y'. (B) Section 3405(b)(1) is amended by striking "subsection ^^' 1 > (d)(3)" and inserting "subsection (e)(3)". (C) Section 3405(d)(1) (as redesignated by paragraph (1)) is amended by striking "subsection (d)(D" and inserting "subsection (e)(1)". 26 USC 3402, (D) Sections 3402(o)(6) and 6047(d)(l) are each amended ^^^'^- by striking "section 3405(d)(l)'' and inserting "section 3405(e)(l)". (E) Section 6047(d)(1)(A) is amended by striking "section 3405(d)(l)" and inserting "section 3405(d)(3)". 26 USC 6652. (F) Section 6652(h) is amended by striking "section 3405(d)(10XB)" and inserting "section 3405(e)(10)(B)".

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