Page:United States Statutes at Large Volume 76.djvu/867

 76 STAT.]

PUBLIC LAW 87-792-OCT. 10, 1962

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sentence, the custodian of such account shall be treated as the trustee thereof. "(2) DEFINITION.—For purposes of paragraph (1), the term 'regulated investment company' means a domestic corporation which— " (A) is a regulated investment company within the meaning of section 851(a), and 26 USC ssi. " (B) issues only redeemable stock. " (g) A N N U I T Y DEFINED.—For purposes of this section and sections 402, 403, and 404, the term 'annuity' includes a face-amount certificate, 26 USC 402.403, as defined in section 2(a) (15) of the Investment Company Act of 1940 '*°'*(15 U.S.C. sec. 80a-2); but does not include any contract or certificate 54 Stat. 790. issued after December 31, 1962, which is transferable, if any person other than the trustee of a trust described in section 401(a) which is exempt from tax under section 501(a) is the owner of such con- 26 USC 401,501. tract or certificate." SEC. 3. DEDUCTIBILITY OF CONTRIBUTIONS TO PLANS. (a) INCLUSION OF SFXF-EMPLOYED INDIVIDUALS.—Section 404(a) of the Internal Revenue Code of 1954 (relating to the deductibility of contributions to pension, annuity, profit-sharing, or stock bonus plans or plans of deferred compensation) is amended— (1) by striking out in paragraph (2) "and (6)," and inserting in lieu thereof " (6), (7), and (8), and, if applicable, the requirements of section 401(a)(9) and (10) and of section 401(d) Ante. pp. sio(other than paragraph (1)), "; and • ^^2. (2) by adding after paragraph (7) the following new paragraphs: "(8) SELF-EMPLOYED INDIVIDUALS.—In the case of a plan included in paragraph (1), (2), or (3) which provides contributions or benefits for employees some or all of whom are employees within the meaning of section 401(c)(1), for purposes of this section— " (A) the term 'employee' includes an individual who is an employee within the meaning of section 401(c)(1), and the employer of such individual is the person treated as his employer under section 401(c)(4); " (B) the term 'earned income' has the meaning assigned to it by section 401(c)(2); " (C) the contributions to such plan on behalf of an individual who is an employee within the meaning of section 401 (c)(1) shall be considered to satisfy the conditions of section 162 or 212 to the extent that such contributions do not exceed 26 USC 162,212. the earned income of such individual derived from the trade or business with respect to which such plan is established, and to the extent that such contributions are not allocable (determined in accordance with regulations prescribed by the Secretary or his delegate) to the purchase of life, accident, health, or other insurance; and " (D) any reference to compensation shall, in the case of an individual who is an employee within the meaning of section 401(c)(1), be considered to be a reference to the earned income of such individual derived from the trade or business with respect to which the plan is established. "(9)

PLANS BENEFITING SELF-EMPLOYED INDIVIDUALS.—In

the

case of a plan included in paragraph (1), (2), or (3) which provides contributions or benefits for employees some or all of whom are employees within the meaning of section 401(c)(1)— " (A) the limitations provided by paragraphs (1), (2), (3), and (7) on the amounts deductible for any taxable year shall

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