Page:United States Statutes at Large Volume 88 Part 1.djvu/1037

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

employee was permitted to elect to receive part of his compensation in one or more alternative forms if one of such forms results in the inclusion of amounts in income under the Internal Revenue Code of 1954. (c) ADMINISTRATION OF LAW W I T H RESPECT TO CERTAIN P L A N S. — (1) ADMINISTRATION I N THE CASE OF PLANS DESCRIBED I N SUBSECTION (b).—Until salary reduction regulations have been

993

26 USC i et ^^^'

issued in final form, the law with respect to plans or arrangements described in subsection (b) shall be administered— (A) without regard to the proposed salary reduction regulations (37 F R 25938) and without regard to any other proposed salary reduction regulations, and (B) in the manner in which such law was administered before January 1, 1972. (2) ADMINISTRATION I N THE CASE OF QUALIFIED PROFIT-SHARING

PLANS.—In the case of plans or arrangements described in subsection (b), in applying this section to the tax treatment of contributions to qualified profit-sharing plans where the contributed amounts are distributable only after a period of deferral, the law shall be administered in a manner consistent with— (A) Revenue Ruling 56-497 (1956—2 C.B. 284), (B) Revenue Ruling 63-180 (1963—2 C.B. 189), and (C) Revenue Ruling 68-89 (1968—1 C.B. 402). (d)

LIMITATION ON RETROACTIVITY OF F I N A L

REGULATIONS.—In

the case of any salary reduction regulations which become final after December 31, 1976— (1) for purposes of chapter 1 of the Internal Revenue Code of 1954 (relating to normal taxes and surtaxes), such regulations ^6 USC i. shall not apply before January 1, 1977; and (2) for purposes of chapter 21 of such Code (relating to Federal Insurance Contributions Act) and for purposes of chapter 24 26 USC 3101. of such Code (relating to collection of income tax at source on 26 USC 3401. wages), such regulations shall not apply before the day on which such regulations are issued in final form. (e) SALARY REDUCTION REGULATIONS DEFINED.—For purposes of this section, the term "salary reduction regulations" means regulations dealing with the includibility in gross income (at the time of contribution) of amounts contributed to a plan which includes a trust that qualifies under section 401(a), or a plan described in section 403(a) ^^26 USC 401, or 405 (a), including plans or arrangements described in subsection (b) 26 USC 405. (2), if the contribution is made under an arrangement under which the contribution will be made only if the employee elects to receive a reduction in his compensation or to forego an increase in his compensation, or under an arrangement under which the employee is permitted to elect to receive part of his compensation in one or more alternative forms (if one of such forms results in the inclusion of amounts in income under the Internal Revenue Code of 1954). SEC. 2008. CERTAIN ARMED FORCES SURVIVOR ANNUITIES. (a)

TREATMENT OF CERTAIN PARTICIPANTS I N THE PLAN.—Section

404(c) (relating to certain negotiated plans) is amended by inserting after the first sentence the following new sentences: "For purposes of this chapter and subtitle B, in the case of any individual who before July 1, 1974, was a participant in a plan described in the preceding sentence—

26 USC 404.

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