Page:United States Statutes at Large Volume 88 Part 1.djvu/1004

 960

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

"(6) The entire interest of an individual for whose benefit the trust is maintained will be distributed to him not later than the close of his taxable year in which he attains age 701/^, or will be distributed, commencing before the close of such taxable year, in accordance with regulations prescribed by the Secretary or his delegate, over— " (A) the life of such individual or the lives of such individual and his spouse, or " (B) a period not extending beyond the life expectancy of such individual or the life expectancy of such individual and his spouse. "(7) I f an individual for whose benefit the trust is maintained dies before his entire interest has been distributed to him, or if distribution has been commenced as provided in paragraph (6) to his surviving spouse and such surviving spouse dies before the entire interest has been distributed to such spouse, the entire interest (or the remaining part of such interest if distribution thereof has comnjenced) will, within 5 years after his death (or the death of the surviving spouse), be distributed, or applied to the purchase of an immediate 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 annuity will be immediately distributed to such beneficiary or beneficiaries. The preceding sentence does not apply if distributions over a term certain commenced before the death of the individual for whose benefit the trust was maintained and the term certain is for a period permitted under paragraph (6). "(b) INDIVIDUAL RETIREMENT A N N U I T Y. — For purposes of this section, the term 'individual retirement annuity' means an annuity contract, or an endowment contract (as determined under regulations prescribed by the Secretary or his dele^^ate), issued by an insurance company which meets the following requirements: " (1) The contract is not transferable by the owner. "(2) The annual premium under the contract will not exceed $1,500 and any refund of premiums will be applied before the close of the calendar year following the year of the refund toward the payment of future premiums or the purchase of additional benefits. "(3) The entire interest of the owner will be distributed to him not later than the close of his taxable year in which he attains age 7014, or will be distributed, in accordance with regulations prescribed by the Secretary or his delegate, over— " (A) the life of such owner or the lives of such owner and his spouse, or " (B) a period not extending beyond the life expectancy of such owner or the life expectancy of such owner and his spouse. " (4) If the owner dies before his entire interest has been distributed to him, or if distribution has been commenced as provided in paragraph (3) to his surviving spouse and such surviving spouse dies before the entire interest has been distributed to such spouse, the entire interest (or the remaining Dart of such interest if distribution thereof has commenced) will, within 5 years after his death (or the death of the surviving spouse), be distributed, or applied to the purchase of an immediate annuity for his beneficiary or beneficiaries (or the beneficiary or beneficiaries of his surviving spouse) which will be payable for the life of such bene-

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