Page:United States Statutes at Large Volume 88 Part 1.djvu/1024

 980

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

participant for any taxable year exceed the limitation of subsection (c), or " (C) in any case in which an individual is a participant in both a defined benefit plan and a defined contribution plan maintained by the employer, the trust has been disqualified under subsection (g). " (2) SECTION APPLIES TO CERTAIN ANNUITIES AND ACCOUNTS.— Ante,

p. 969.

26 USC 4 0 3.

Ante,

p. 959.

26 USC 4 0 5.

^"'^•p-Ante. p. 959.

in the case of— " (A) an employee annuity plan described in section 403 " (B) an annuity contract described in section 403(b), " (C) an individual retirement account described in section 408(a), " (D) an individual retirement annuity described in section 408(b), " (E) a plan described in section 405(a), or " (F) a retirement bond described in section 409, such contract, annuity plan, account, annuity, plan, or bond shall not be considered to be described in section 403(a), 403 (b), 405 (a), 408(a), 408(b), or 409, as the case may be, unless it satisfies the requirements of subparagraph (A) or subparagraph (B) of paragraph (1), whichever is appropriate, and has not been disqualified under subsection (g). I n the case of an annuit}" contract described in section 403(b), the preceding sentence shall apply only to the portion of the annuity contract which exceeds the limitation of subsection (b) or the limitation of subsection (c), whichever is appropriate, and the amount of the contribution for such portion shall reduce the exclusion allowance as provided in section 403 (b)(2). " (b) LIMITATION FOR DEFINED BENEFIT P L A N S. —

" (1) IN GENERAL.—Benefits with respect to a participant exceed the limitation of this subsection if, when expressed as an annual benefit (within the meaning of paragraph (2)), such annual benefit is greater than the lesser of— " (A) $75,000,or " (B) 100 percent of the participant's average compensation for his high 3 years. " (2) ANNUAL BENEFIT.—

Ante, 969.

p p. 968,

" (A) IN GENERAL.—For purposes of paragraph (1), the term 'annual benefit' means a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) under a plan to which employees do not contribute and under which no rollover contributions (as defined in sections 402 (a)(5), 403(a)(4), 408(d)(3), and 409(b)(3)(C) are made. " (B) ADJUSTMENT FOR CERTAIN OTHER FORMS or BENEFIT.—

If the benefit under the plan is payable in any form other than the form described in subparagraph (A), or if the employees contribute to the plan or make rollover contributions (as defined in sections402(a)(5),403(a)(4),408(d)(3) and 409 (b)(3)(C)), the determinations as to whether the limitation described in paragraph (1) has been satisfied shall be made, in accordance with regulations prescribed by the Secretary or his delegate, by adjusting such benefit so that it is equivalent to the benefit described in subparagraph (A). For purposes of this subparagraph, any ancillary benefit which is not directly related to retirement income benefits shall not be taken into account; and that portion of any joint and survivor annuity which constitutes a qualified joint and

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