Page:United States Statutes at Large Volume 111 Part 1.djvu/1102

 Ill STAT. 1078 PUBLIC LAW 105-34~AUG. 5, 1997 due date for filing the return of the tax imposed by chapter 11.". (c) CONFORMING AMENDMENTS.— (1) Section 401(a)(1) is amended by inserting "or by a charitable remainder trust pursuant to a qualified gratuitous transfer (as defined in section 664(g)(1))," after "stock bonus plans),". (2) Section 404(a)(9) is amended by inserting after subparagraph (B) the following new subparagraph: "(C) A qualified gratuitous transfer (as defined in section 664(g)(1)) shall have no effect on the amount or amounts otherwise deductible under paragraph (3) or (7) or under this paragraph.". (3) Section 415(c)(6) is amended by adding at the end thereof the following new sentence: "The amount of any qualified gratuitous transfer (as defined in section 664(g)(1)) allocated to a participant for any limitation year shall not exceed the limitations imposed by this section, but such amount shall not be taken into account in determining whether any other amount exceeds the limitations imposed by this section.". (4) Section 415(e) is amended— (A) by redesignating paragraph (6) as paragraph (7), and (B) by inserting after paragraph (5) the following new paragraph: " (6) SPECIAL RULE FOR QUALIFIED GRATUITOUS TRANSFERS.— Any qualified gratuitous transfer of qualified employer securities (as defined by section 664(g)) shall not be taken into account in calculating, and shall not be subject to, the limitations provided in this subsection.". (5) Subparagraph (B) of section 664(d)(1) and subparagraph (B) of section 664(d)(2) are each amended by inserting "and other than qualified gratuitous transfers described in subparagraph (C)" after "subparagraph (A)". (6) Paragraph (4) of section 674(b) is amended by inserting before the period "or to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined in section 664(g)(1))". (7) Section 2055(a) is amended— (i) by striking "or" at the end of paragraph (3), (ii) by striking the period at the end of paragraph (4) and inserting "; or", and (iii) by inserting after paragraph (4) the following new paragraph: "(5) to an employee stock ownership plan if such transfer qualifies as a qualified gratuitous transfer of qualified employer securities within the meaning of section 664(g).". (8) Paragraph (8) of section 2056(b) is amended to read as follows: " (8) SPECIAL RULE FOR CHARITABLE REMAINDER TRUSTS.— "(A) IN GENERAL. — If the surviving spouse of the decedent is the only beneficiary of a qualified charitable remainder trust who is not a charitable beneficiary nor an ESOP beneficiary, paragraph (1) shall not apply to any interest in such trust which passes or has passed from the decedent to such surviving spouse.

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