Page:United States Statutes at Large Volume 92 Part 1.djvu/1313

 PUBLIC LAW 95-458—OCT. 14, 1978 '* ' ' ' " ' "' ,,

92 STAT. 1259

" ( III) a retirement bond described in section 409, 26 USC 409. " (IV) a qualified trust, and "(V) an annuity plan described in section 403(a). 26 USC 403.

• " (E) SPECIAL RULES.— "(i)

TRANSFER TREATED AS ROLLOVER CONTRIBUTION SECTION 4 0 8.—For purposes of this title, a transfer

UNDER described in subparagraph (A) to an eligible retirement plan described in subclause (I), ( II), or ( III) of subparagraph (D) (iv) shall be treated as a rollover contribution described in section 408(d)(3). "(ii)

SELF-EMPLOYED

INDIVIDUALS

AND

26 USC 408.

OWNER-

EMPLOYEES.—An eligible retirement plan described in subclause (IV) or (V) of subparagraph (D) (iv) shall not be treated as an eligible retirement plan for the transfer of a distribution if any part of the distribution is attributable to a trust forming part of a plan under which the employee was an employee within the meaning of section 401(c)(1) at the time contributions were 26 USC 401. made on his behal f under the plan." (b) PARTIAL ROLLOVER OF ANNUITY CONTRACTS PERMITTED.—Sub-

section (a) of section 403 of such Code (relating to taxability of 26 USC 403. beneficiary under a qualified annuity plan) is amended by striking out paragraphs (4) and (5) and inserting in lieu thereof the following new paragraph: "(4)

ROLLOVER AMOUNTS.—

" (A) GENERAL RULE.—If—

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" (i) the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution. "(ii) the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan, and "(iii) in the case of a distribution of property other than money, the amount so transferred consists of the property distributed, then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid. "(B)

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CERTAIN RULES MADE APPLICABLE.—Eules similar to

the rules of subparagraphs (B) through (E) of section 402 Ante, p. 1258. (a)(5) and of paragraph (6) of section 402(a) shall apply 26 USC 402. for purposes of subparagraph (A)." (c) TAXATION OF PORTION NOT ROLLED OVER.—

(1) IN GENERAL.—Paragraph (6) of section 402(a) of such Code (relating to special rollover rules) is amended by adding at the end thereof the following new subparagraph: "(C)

TREATMENT OF PORTION NOT ROLLED OVER.—If

any

portion of a lump sum distribution is transferred in a transfer to which paragraph (5)(A) applies, paragraph (2) of sub- Ante, p. 1258. section (a), and paragraphs (1) and (3) of subsection (e) shall not apply with respect to such lump sum distribution." (2) CONFORMING AMENDMENTS.—Paragraph (6) of section

402 (a) of such Code is amended— (A) by striking out "For purposes of paragraph (5)(A) (i)"»

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