Page:United States Statutes at Large Volume 79.djvu/377

 79 STAT. ]

PUBLIC LAW 89-97-JULY 30, 1965

policyholder by the insurance company in a separate statement) as the charge for such insurance is unreasonably large in relation to the total charges under the contract. "(3) Subject to the limitations of paragraph (2), premiums paid during the taxable year by a taxpayer before he attains the age of 65 for insurance covering medical care (within the meaning of subparagraphs (A) and (B) of paragraph (1)) for the taxpayer, his spouse, or a dependent after the taxpayer attains the age of 65 shall be treated as expenses paid during the taxable year for insurance which constitutes medical care if premiums for such insurance are payable (on a level payment basis) under the contract for a period of 10 years or more or until the year in which the taxpayer attains the age of 65 (but in no case for a period of less than 5 years)." (d)(1) Section 213 of such Code (relating to medical, dental, etc., expenses) is amended by striking out subsections (c) and (g) of such section. (2)(A) Section 72(m)(5)(A)(i) of such Code (relating to special rules applicable to employment annuities and distributions under employee plans) is amended by striking out "section 213(g)(3) " and inserting in lieu thereof "paragraph (7) of this subsection". (B) Section 72(m) of such Code is further amended by adding at the end thereof the following new paragraph: "(7) MEANING OF DISABLED.—For purposes of this section, an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary or his delegate may require." (C) Subparagraphs (A) (iii) and (B) ( i i i) of section 7 2 (n)(l) of such Code (relating to treatment of certain distributions with respect to contributions by self-employed individuals) are each amended by striking out "section 2 1 3 (g)(3) " and inserting in lieu thereof "subsection (m)(7)". (3) Section 79(b)(1) of such Code (relating to group-term life insurance purchased for employees) is amended by striking out "paragraph (3) of section 213(g), determined without regard to paragraph (4) thereof" and inserting in lieu thereof "section 72(m)(7)". (4) Section 4 0 1 (d)(4)(B) of such Code (relating to additional requirements for qualification of trusts and plans benefiting owneremployees) is amended by striking out "section 213(g)(3) " and inserting in lieu thereof "section 72(m)(7)". (5) Section 405(b)(1)(D) (ii) of such Code (relating to qualified bond purchase plans) is amended by striking out "section 213(g)(3) " and inserting in lieu thereof "section 72(m)(7)". (e) The amendments made by this section shall apply to taxable years beginning after December 31, 1966.

337

^^ stat^. ^IM3. 76 Stat. 821. 26 USC 72.

26 USC ^^'

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26 USC 405.

RECEIPTS FOR EMPLOYEES MUST SHOW TAXES SEPARATELY

SEC. 107. Section 6051(c) of the Internal Revenue Code of 1954 (relating to additional requirements) is amended by adding at the end thereof the following new sentence: "The statements required under this section shall also show the proportion of the total amount

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