Page:United States Statutes at Large Volume 90 Part 2.djvu/274

 90 STAT. 1742

PUBLIC LAW 94-455—OCT. 4, 1976 •i^^'C""'' •

" (A) the annual addition determined under this section with respect to the participant for such year consists solely of such contribution, and " (B) the participant is not an active participant at any time during such year in a defined benefit plan maintained by the employer. For purposes of this section and section 401(e), in the case of a plan which provides contributions or benefits for employees who are not owner-employees, such plan will not be treated as failing to satisfy section 4 0 1 (a)(4) merely because contributions made on behalf of employees w h o a r e not owner-employees a r e not permitted to exceed the limitations of paragraph (1)(B). " (b) ErrECTivE D A T E. — The amendment made by this section shall apply for years beginning after December 31, 1975. SEC. 1512. LUMP-SUM DISTRIBUTIONS FROM QUALIFIED PENSION, ETC., PLANS. (a) IN GENERAL.—Section 4 0 2 (e)(4) (relating to definitions and special rules) is amended by a d d i n g a t the end thereof the following new subparagraph:

26 USC 401.

26 USC 415 note.

26 USC 402. f»,)p;^;. !

V.,

26 USC 402 note

" (L) ELECTION TO TREAT P R E - I 9 74 PARTICIPATION AS POST-

1973 PARTICIPATION.—For purposes of subparagraph (E), subsection (a)(2), and section 403(a)(2), if a taxpayer elects (at the time and in the manner provided under regulations prescribed by the Secretary), all calendar years of an employee's active participation in all plans in which the employee has been an active participant shall be considered years of active participation by such employee after December 31, 1973. A n election made under this subparagraph, once made, shall be irrevocable and shall apply to all lump-sum distributions received by the tax p a y e r with respect to the employee. This subparagraph shall not apply if the tax p a y e r received a lump-sum distribution in a previous taxable year of the ^ employee beginning after December 31, 1975, unless no portion of such lump-sum distribution was treated under subsection (a)(2) or section 403(a)(2) as gain from the sale or exchange of a capital asset held for more than 6 months." (^) EFFECTIVE D A T E. — The amendment made by this section shall apply to distributions and payments made after December 31, 1975, in taxable years beginning after such date.

TITLE XVI—REAL ESTATE INVESTMENT TRUSTS '

"

SEC. 1601. DEFICIENCY DIVIDEND PROCEDURE. (a) IN GENERAL.—

26 USC 859.
 * ?J.# v*^j ii^

(1) Part II of subchapter M of chapter 1 (relating to real estate investment trusts) is amended by adding a t the end thereof the following new section: "SEC. 859. DEDUCTION FOR DEFICIENCY DIVIDENDS. "(a)

GENERAL RULE. — I f a determination

(as defined in subsec-

tion (c)) with respect to a real estate investment t r u s t results in any adjustment (as defined in subsection (b)(1)) for any taxable year, a deduction shall be allowed to such t r u s t for the amount of deficiency dividends (as defined in subsection (d)) for purposes of determining

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