Page:United States Statutes at Large Volume 92 Part 3.djvu/170

 92 STAT. 2802

PUBLIC LAW 95-600—NOV. 6, 1978 "(8) ROLLOVER AMOUNTS.— "(A) GENERAL RULE.—If—

)

^

"(i) the balance to the credit of an employee is paid to him in a qualifying distribution, "(ii) the employee transfers any portion of the property he receives in such distribution to an individual retirement plan or to an annuity contract described in paragraph (1), and "(iii) in the case of a distribution of property other than money, the property 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) QUALIFYING DISTRIBUTION DEFINED.—

26 USC 402.

"(i) IN GENERAL.—For purposes of subparagraph (A), the term 'qualifying distribution' means 1 or more distributions from an annuity contract described in paragraph (1) which would constitute a lump sum distribution within the meaning of section 402(e)(4)(A) (determined without regard to subparagraphs (B) and (H) of section 402(e)(4)) if such annuity contract were described in subsection (a). "(ii) AGGREGATION OF ANNUITY CONTRACTS.—For purposes of this paragraph, all annuity contracts described in paragraph (1) purchased by an employer shall be treated as a single contract, and section 402(e)(4)(C) shall not apply. "(C) CERTAIN RULES MADE APPLICABLE.—Rules similar to

the rules of subparagraphs (B), (C), and (E)(i) of section 402(a)(5) and of paragraphs (6) and (7) of section 402(a) shall apply for purposes of subparagraph (A)." 26 USC 403.

(b) TREATMENT OF ROLLOVER CONTRIBUTIONS.—Section 403(b)(1)

26 USC 408, ^^^-

(relating to annuities purchased by certain exempt organizations and public schools) is amended by adding at the end thereof the following new sentence: "For purposes of applying the rules of this subsection to amounts contributed by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section 408(d)(3)(A)(iii) or 409(d)(3)(C) shall not be considered contributed by such employer." (c) TECHNICAL AND CONFORMING AMENDMENTS.—

26 USC 408.

26 USC 403.

(1) Subparagraph (A) of section 408(d)(3) is amended by striking out "or" at the end of clause (i), by striking out the period at the end of clause (ii) and inserting in lieu thereof "; or", and by adding at the end thereof the following new clause: "(iii)(l) the entire amount received (including money and other property) represents the entire interest in the account or the entire value of the annuity, "(II) no amount in the account and no part of the value of the annuity is attributable to any source other than a rollover contribution from an annuity contract described in section 403(b) and any earnings on such rollover, and "(III) the entire amount thereof is paid into another annuity contract described in section 4030t)) (for the

�