Page:United States Statutes at Large Volume 110 Part 3.djvu/59

 PUBLIC LAW 104-188—AUG. 20, 1996 110 STAT. 1789 (5) Section 401(a)(28)(B) (relating to coordination with distribution rules) is amended by striking clause (v). (6) Subparagraph (B)(ii) of section 401(k)(10) (relating to distributions that must be lump-sum distributions) is amended to read as follows: "(ii) LUMP-SUM DISTRIBUTION.—For purposes of this subparagraph, the term lump-sum distribution' has the meaning given such term by section 402(e)(4)(D) (without regard to subclauses (I), (II), (III), and (IV) of clause (i) thereof).". (7) Section 406(c) (relating to termination of status as deemed employee not to be treated as separation from service for purposes of limitation of tax) is hereby repealed. (8) Section 407(c) (relating to termination of status as deemed employee not to be treated as separation from service for purposes of limitation of tax) is hereby repealed. (9) Section 691(c) (relating to deduction for estate tax) is amended by striking paragraph (5). (10) Paragraph (1) of section 871(b) (relating to imposition of tax) is amended by striking "section 1, 55, or 402(d)(1)" and inserting "section 1 or 55". (11) Subsection (b) of section 877 (relating to alternative tax) is amended by striking "section 1, 55, or 402(d)(1)" and inserting "section 1 or 55". (12) Section 4980A(c)(4) is amended— (A) by striking "to which an election under section 402(d)(4)(B) applies" and inserting "(as defined in section 402(e)(4)(D)) with respect to which the individual elects to have this paragraph apply", (B) by adding at the end the following new flush sentence: "An individual may elect to have this paragraph apply to only one lump-sum distribution.", and (C) by striking the heading and inserting: "(4) SPECIAL ONE-TIME ELECTION.— ". (13) Section 402(e) is amended by striking paragraph (5). (c) EFFECTIVE DATES.— 26 USC 402 note. (1) IN GENERAL.— The amendments made by this section shall apply to taxable years beginning after December 31, 1999. (2) RETENTION OF CERTAIN TRANSITION RULES.— The amendments made by this section shall not apply to any distribution for which the taxpayer is eligible to elect the benefits of section 1122(h)(3) or (5) of the Tax Reform Act of 1986. Notwithstanding the preceding sentence, individuals who elect such benefits after December 31, 1999, shall not be eligible for 5-year averaging under section 402(d) of the Internal Revenue Code of 1986 (as in effect immediately before such amendments). SEC. 1402. REPEAL OF $5,000 EXCLUSION OF EMPLOYEES' DEATH BENEFITS. (a) IN GENERAL. —Subsection (b) of section 101 is hereby repealed. (b) CONFORMING AMENDMENTS.— (1) Subsection (c) of section 101 is amended by striking "subsection (a) or (b)" and inserting "subsection (a)".

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