Page:United States Statutes at Large Volume 120.djvu/885

 120 STAT. 854

26 USC 420.

VerDate 14-DEC-2004

10:20 Jul 12, 2007

PUBLIC LAW 109–280—AUG. 17, 2006

‘‘(I) the amount determined under section 431(c)(6)(A)(i) in the case of a multiemployer plan (and the sum of the funding shortfall and target normal cost determined under section 430 in the case of any other plan), over’’. (d) TRANSFER OF EXCESS PENSION ASSETS TO RETIREE HEALTH ACCOUNTS.— (1) Section 420(e)(2) of such Code is amended to read as follows: ‘‘(2) EXCESS PENSION ASSETS.—The term ‘excess pension assets’ means the excess (if any) of— ‘‘(A) the lesser of— ‘‘(i) the fair market value of the plan’s assets (reduced by the prefunding balance and funding standard carryover balance determined under section 430(f)), or ‘‘(ii) the value of plan assets as determined under section 430(g)(3) after reduction under section 430(f), over ‘‘(B) 125 percent of the sum of the funding shortfall and the target normal cost determined under section 430 for such plan year.’’. (2) Section 420(e)(4) of such Code is amended to read as follows: ‘‘(4) COORDINATION WITH SECTION 430.—In the case of a qualified transfer, any assets so transferred shall not, for purposes of this section and section 430, be treated as assets in the plan.’’. (e) EXCISE TAXES.— (1) IN GENERAL.—Subsections (a) and (b) of section 4971 of such Code are amended to read as follows: ‘‘(a) INITIAL TAX.—If at any time during any taxable year an employer maintains a plan to which section 412 applies, there is hereby imposed for the taxable year a tax equal to— ‘‘(1) in the case of a single-employer plan, 10 percent of the aggregate unpaid minimum required contributions for all plan years remaining unpaid as of the end of any plan year ending with or within the taxable year, and ‘‘(2) in the case of a multiemployer plan, 5 percent of the accumulated funding deficiency determined under section 431 as of the end of any plan year ending with or within the taxable year. ‘‘(b) ADDITIONAL TAX.—If— ‘‘(1) a tax is imposed under subsection (a)(1) on any unpaid required minimum contribution and such amount remains unpaid as of the close of the taxable period, or ‘‘(2) a tax is imposed under subsection (a)(2) on any accumulated funding deficiency and the accumulated funding deficiency is not corrected within the taxable period, there is hereby imposed a tax equal to 100 percent of the unpaid minimum required contribution or accumulated funding deficiency, whichever is applicable, to the extent not so paid or corrected.’’. (2) Section 4971(c) of such Code is amended— (A) by striking ‘‘the last two sentences of section 412(a)’’ in paragraph (1) and inserting ‘‘section 431’’, and (B) by adding at the end the following new paragraph: ‘‘(4) UNPAID MINIMUM REQUIRED CONTRIBUTION.—

Jkt 059194

PO 00001

Frm 00852

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.109

APPS06

PsN: PUBL001

�