Page:United States Statutes at Large Volume 92 Part 3.djvu/149

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2781

"(4) BENEFICIARY.—The term 'beneficiary' means a beneficiary of the participant, his estate, or any other person whose interest in the plan is derived from the participant. "(5) INCLUDIBLE COMPENSATION.—The term 'includible compensation' means compensation for service performed for the State which (taking into account the provisions of this section and section 4O30b)) is currently includible in gross income, "(6) COMPENSATION TAKEN INTO ACCOUNT AT PRESENT VALUE.—

Compensation shall be taken into account at its present value. "(7) COMMUNITY PROPERTY LAWS.—The amount of includible compensation shall be determined without regard to any community property laws. "(8) INCOME ATTRIBUTABLE.—Gains from the disposition of property shall be treated as income attributable to such property.

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"(9) SECTION TO APPLY TO RURAL ELECTRIC COOPERATIVES.—

"(A) IN GENERAL.—This section shall apply with respect to any participant in a plan of a rural electric cooperative in the same manner and to the same extent as if such plan were a plan of a State. "(B) RURAL ELECTRIC COOPERATIVE DEFINED.—For purposes

of subparagraph (A), the term 'rural electric cooperative' means— "(i) any organization described in section 501(c)(12) 26 USC 501. which is exempt from tax under section 501(a) and which is engaged primarily in providing electric service, and "(ii) any organization described in section 501(c)(6) which is exempt from tax under section 501(a) and all the members of which are organizations described in clause (i). "(e) TAX TREATMENT OF PARTICIPANTS WHERE PLAN OR ARRANGEMENT OF STATE IS NOT ELIGIBLE.—

"(1) IN GENERAL.—In the case of a plan of a State providing for a deferral of compensation, if such plan is not an eligible State deferred compensation plan, then— "(A) the compensation shall be included in the gross income of the participant or beneficiary for the first taxable year in which there is no substantial risk of forfeiture of the rights to such compensation, and "(B) the tax treatment of any amount made available under the plan to a participant or beneficiary shall be determined under section 72 (relating to annuities, etc.). "(2) EXCEPTIONS.—Paragraph (1) shall not apply to— "(A) a plan described in section 401(a) which includes a trust exempt from tax under section 501(a), "(B) an annuity plan or contract described in section 403, "(C) a qualified bond purchase plan described in section 405(a), "(D) that portion of any plan which consists of a transfer of property described in section 83, and "(E) that portion of any plan which consists of a trust to which section 402(b) applies. "(3) DEFINITIONS.—For purposes of this subsection— "(A) PLAN INCLUDES ARRANGEMENTS, ETC.—The term 'plan' includes any agreement or arrangement.

26 USC 72. 26 USC 40i. 26 USC 501. 26 USC 403. 26 USC 405. 26 USC 83. 26 USC 402.

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