Page:United States Statutes at Large Volume 90 Part 1.djvu/416

 9 0 STAT. 3 6 6

PUBLIC LAW 9 4 - 2 6 7 — A P R. 15, 1976 other transfer to the acquiring corporation of all or substantially all of the assets used by the previous employer of the employee (hereinafter referred to as the selling corporation) in a trade or business conducted by the selling corporation, shall be treated as a payment or distribution on account of the termination of the plan with respect to such employee if the employees of the employer corporation or the acquiring corporation (whichever applies) are not active participants i n such plan at the time of such payment or distribution. For purposes of this subparagraph, in no event shall a payment or distribution be deemed to be in connection with a sale or other transfer of assets, or a liquidation, sale, or other means of terminating such parent-subsidiary or controlled group relationship, if such payment or distribution is made later than the end of the second calendar year after the calendar year in which occurs such sale or other transfer of assets, or such liquidation, sale, or other means of term i n a t i n g such parent-subsidiary or controlled group relationship.".

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26 USC 403.

(b) TERMINATION OF A N N U I T Y P L A N. — S e c t i o n 403(a)

26 USC 402.

.

(relating

to rollover amounts) is amended— (1) by striking out subparagraph (4)(A) and inserting in lieu thereof the following: " (A) the balance to the credit of an employee is paid to him— " (i) within one taxable year of the employee on account of a termination of the plan of which such trust is a part or, in the case of a profit-sharing plan, a complete discontinuance of contributions under such plan, or " ( i i) in one or more distributions which constitutes a lump-sum distribution within the meaning of section 402 (e)(4)(A) (determined without reference to section 402 (e)(4)(B)),'', (2) by striking out " the lump-sum distribution" in the last sentence of paragraph (4) and inserting in lieu thereof "a payment", and (3) by a d d i n g a t the end thereof the following paragraph: " (5) SPECIAL ROLLOVER RULES.—For purposes of paragraph (4) . (A)(i)" (A) T I M E or TERMINATION.—A complete discontinuance

26 USC 411.

of contributions under a profit-sharing plan shall be deemed to occur on the day the plan administrator notifies the Secretary or his delegate (in accordance with regulations prescribed by the Secretary or his delegate) that all contributions to the plan have been completely discontinued. For purposes of section 411(d)(3), the plan shall be considered to be terminated no later than the d a y such notice is filed with the Secretary or his delegate. "(B)

26 USC 425. 26 USC 1563.

SALE or SUBSIDIARY O ASSETS.— R

" (i) A payment of the balance to the credit of an employee of a corporation (hereinafter referred to as the employer corporation) which is a subsidiary corporation (within the meaning of section 4 2 5 (f)) or which is a member of a controlled group of corporations (within the meaning of section 1563(a), determined by substit u t i n g '50 percent' for '80 percent' each place it appears therein) in connection with the liquidation, sale, or other

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