Page:United States Statutes at Large Volume 94 Part 1.djvu/251

 PUBLIC LAW 96-222—APR. 1, 1980

94 STAT. 201

(X) The table of sections for subchapter B of chapter 68 is amended by striking out "ESOP" in the item relating to section 6699 and inserting in lieu thereof "tax credit 26 USC 6699. employee stock ownership plan". (5Q) The paragraph heading for paragraph (7) of section 4975(e) is amended by striking out "LEVERAGED 26 USC 4975. EMPLOYEE" and inserting in lieu thereof "EMPLOYEE". (M) CLERICAL AMENDMENTS.—

(i) Subparagraph (E) of section 46(a)(2) is amended by inserting "and ending on" before "December 31, 1983 ' each place it appears. (ii) Subparagraph (B) of section 48(n)(2) is amended by adding "and" at the end of clause (i), by striking out clause (ii), and by redesignating clause (iii) as clause (ii). (iii) Paragraph (5) of section 48(o) (as amended by subparagraph (D) is amended by inserting "percentage' after "attributable to the matching employee plan". (8) AMENDMENTS RELATED TO SECTION 14 2 OF THE ACT.— (A) Subsection (c) of section 691 (relating to deduction for estate tax) is eunended by adding at the end thereof the following new paragraph: "(5) COORDINATION WITH SECTION 402(E).—For purposes of section 402(e) (other than paragraph (1)(D) thereof), the total taxable amount of any lump sum distribution shall be reduced by the amount of the deduction allowable under paragraph (1) of this subsection which is attributable to the total taxable amount (determined without regard to this paragraph)." (B) Paragraph (2) of section 2039(f) (relating to lump sum distributions) is amended by striking out "without the application of paragraph (2) thereof and inserting in lieu thereof "(without the application of paragraph (2) thereof), except to the extent that section 402(e)(4)(J) applies to such distribution". (9) AMENDMENT RELATED TO SECTION 143 OF THE ACT.—Subparagraph (B) of section 401(a)(22) is amended by striking "as securities and inserting in lieu thereof "are securities". (10) AMENDMENTS RELATED TO SECTION 1 5 OF THE ACT.—
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26 USC 46. 26 USC 48.

92 Stat. 2796. 26 USC 69i. 26 USC 402.

26 USC 2039.

92 Stat. 2796. 26 USC 401. 92 Stat. 2797.

(A) CERTAIN EMPLOYEES MAY BE EXCLUDED.—Paragraph (2)

of section 408(k) (relating to participation requirements for 26 USC 408. simplified employee pensions) is amended by adding at the end thereof the following new sentence: "For purposes of this paragraph, there shall be excluded from consideration employees described in subparagraph (A) or (C) of section 410(b)(2)." (B) CONTRIBUTIONS UNDER SIMPLIFIED EMPLOYEE PENSION NOT SUBJECT TO FICA OR FUTA TAXES.—

(i) FICA TAX.—Paragraph (5) of section 3121(a) (defm- 26 USC 3121. ing wages) is amended by strildng out "or" at the end of subparagraph (B), by striking out the semicolon at the end of subparagraph (C) and inserting in lieu thereof ", or", and by adding at the end thereof the following new subparagraph: "(D) under a simplified employee pension if, at the time of the payment, it is reasonable to believe that the employee will be entitled to a deduction under section 219 for such payment;". (ii) FUTA TAX.—Paragraph (5) of section 3306(b) (de- 26 USC 3306. fining wages) is amended by striking out "or" at the end

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