Page:United States Statutes at Large Volume 106 Part 1.djvu/347

 PUBLIC LAW 102-318—JULY 3, 1992 106 STAT. 315 (c) EXCLUSION FROM INCOME.— (1) QUALIFIED TRUSTS.—Subsection (e) of section 402 (relating 26 USC 402. to taxability of beneficiary of employees' trust), as amended by section 521, is amended by adding at the end the following new paragraph: transferred in a direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of such transfer." (2) EMPLOYEE ANNUITIES.— Subsection (a) of section 403 is 26 USC 403. amended by adding at the end the following new paragraph: "(5) DIRECT TRUSTEE-TO-TRUSTEE TRANSFER. —Any amount transferred in a direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of such transfer." (3) ANNUITY CONTRACTS PURCHASED BY CHARITIES AND PUBLIC SCHOOLS. —Section 403(b)(10) is amended by adding at the end the following new sentence: "Any amount transferred in an direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of the transfer." (d) EFFECTIVE DATES.— 26 USC 401 note. (1) IN GENERAL. —Except as provided in paragraph (2), the amendments made by this section shall apply to distributions after December 31, 1992. (2) TRANSITION RULE FOR CERTAIN ANNUITY CONTRACTS. — If, as of July 1, 1992, a State law prohibits a direct trusteeto-trustee transfer from an annuity contract described in section 403(b) of the Internal Revenue (Jode of 1986 which was purchased for an employee by an employer which is a State or a political subdivision thereof (or an agency or instrumentaUty of any 1 or more of either), the amendments made by this section shall not apply to distributions before the earlier of— (A) 90 days after the first day after July 1, 1992, on which such transfer is allowed under State law, or (B) January 1, 1994. SEC. 523. DATE FOR ADOPTION OF PLAN AMENDMENTS. 26 USC 401 note. If any amendment made by this subtitle requires an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or an»r January 1, 1994, if — (1) during the period after such amendment takes effect and before such first plan year, the plan is operated in accordance with the requirements of such amendment, and (2) such plan amendment applies retroactively to such period. Subtitle C—Other Provisions SEC. 531. MODIFICATIONS TO FEDERAL UNEMPLOYMENT ACCOUNTS. (a) MODIFICATIONS TO EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT. — (1) TRANSFERS TO ACCOUNT.—Paragraph (1) of section 905(b) of the Social Security Act is amended to read as follows— 42 USC 1105. "(b)(1) Except as provided in paragraph (3), the Secretary of the Treasury shall transfer (as of the close of each month), irom
 * (6) DIRECT TRUSTEE-TO-TRUSTEE TRANSFERS.—Any amount

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