Page:United States Statutes at Large Volume 76.djvu/862

 814

PUBLIC LAW 87-792-OCT. 10, 1962

68 A Stat. 138; Post, p.'820. 26 USC 404.

Post,

p. 823.

Post,

p.815.

Poat,

[76 STAT.

deducted under section 404 (determined without regard to section 404(a) (10)) for the taxable year; " (B) in the case of a plan which provides contributions or benefits only for owner-employees, contributions to be made on behalf of any owner-employee in excess of the amounts which may be deducted under section 404 (determined without regard to section 404(a) (10)) for the taxable year; and "^(C) if a distribution under the plan is made to any employee and if any portion of such distribution is an amount described in section 7 2 (m)(5)(A)(i), contributions to be made on behalf of such employee for the 5 taxable years succeeding the taxable year in which such distribution is made. Subparagraphs (A) and (B) shall not apply to any contribution which is not considered to be an excess contribution (as defined in subsection (e)(1)) by reason of the application of subsection (e)

p. 8 1 7.

26 USC 401. 26 USC 14011403. 26 USC 310 IT 3126.1 42 USC 401 et seg.

26 USC 1402.

26 USC 3111.

Ante,

p. 810.

Post,

p. 817.

"(6) Except as provided in this paragraph, the plan meets the requirements of subsection (a)(4) without taking into account for any purpose contributions or benefits under chapter 2 (relating to tax on self-employment income), chapter 21 (relating to Federal Insurance Contributions Act), title II of the Social Security Act, as amended, or any other Federal or State law. If— " (A) of the contributions deductible under section 404 (determined without regard to section 404(a) (10)), not more than one-third is deductible by reason of contributions by the employer on behalf of owner-employees, and " (B) taxes paid by the owner-employees under chapter 2 (relating to tax on self-employment income), and the taxes which would be payable under such chapter 2 by the owneremployees but for paragraphs (4) and (5) of section 1402(c), are taken into account as contributions by the employer on behalf of such owner-employees, then taxes paid under section 3111 (relating to tax on employers) with respect to an employee may, for purposes of subsection (a) (4), be taken into account as contributions by the employer for such employee under the plan. "(7) Under the plan, if an owner-employee dies before his entire interest has been distributed to him, or if distribution has been commenced in accordance with subsection (a)(9)(B) to his surviving spouse and such surviving spouse dies before his entire interest has been distributed to such surviving spouse, his entire interest (or the remaining part of such interest if distribution thereof has commenced) will, within 5 years after his death (or the death of his surviving spouse), be distributed, or applied to the purchase of an inmfediate annuity for his beneficiary or beneficiaries (or the beneficiary or beneficiaries of his surviving spouse) which will be payable for the life of such beneficiary or beneficiaries (or for a term certain not extending beyond the life expectancy of such beneficiary or beneficiaries) and which will be immediately distributed to such beneficiary or beneficiaries. The preceding sentence shall not apply if distribution of the interest of an owner-employee has commenced and such distribution is for a term certain over a period permitted under subsection (a)(9)(B)(ii). "(8) Under the plan— " (A) any contribution which is an excess contribution, together with the income attributable to such excess contribution, is (unless subsection (e)(2)(E) applies) to be repaid

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