Page:United States Statutes at Large Volume 94 Part 3.djvu/883

 PUBLIC LAW 96-605—DEC. 28, 1980

94 STAT. 3527

"(B) any other organization if— "(i) a significant portion of the business of such organization is the performance of services (for the first organization, for organizations described in subparagraph (A), or for both) of a type historically performed in such service field by employees, and "(ii) 10 percent or more of the interests in such organization is held by persons who are officers, highly compensated employees, or owners of the first organization or an organization described in subparagraph (A). "(3) SERVICE ORGANIZATIONS.—For purposes of this subsection, the term 'service organization' means an organization the principal business of which is the performance of services. "(4) EMPLOYEE BENEFIT REQUIREMENTS.—For purposes of this subsection, the employee benefit requirements listed in this paragraph are— "(A) paragraphs (3), (4), (7), and (16) of section 401(a), "(B) sections 408(k), 410,411, and 415, "(C) section 105(h), and "(D) section 125. "(5) OTHER DEFINITIONS.—For purposes of this subsection— "(A) ORGANIZATION DEFINED.—The term 'organization' means a corporation, partnership, or other organization. "(B) OWNERSHIP.—In determining ownership, the principles of section 267(c) shall apply. "(6) PREVENTION OF AVOIDANCE.—The Secretary shall prescribe such regulations as may be necessary to prevent the avoidance with respect to service organizations, through the use of separate organizations, of any employee benefit requirement listed in paragraph (4)."

26 USC 401. 26 USC 408, 410, 26 USC 105 26 USC 125^

26 USC 267. Regulations,

(b) TECHNICAL AMENDMENTS.—

(1) Paragraph (8) of section 105(h) (relating to amount paid to 26 USC 105. highly compensated individuals under a discriminatory selfinsured medical expense reimbursement plan) is amended— (A) by striking out "subsection (b) or (c) of section 414" and inserting in lieu thereof "subsection Qo), (c), or (m) of section 414", and (B) by striking out "CONTROLLED GROUPS" in the paragraph heading and inserting in lieu thereof "CONTROLLED GROUPS, ETC.".

(2) Paragraph (4) of section 125(g) (relating to special rules for 26 USC 125. cafeteria plans) is amended— (A) by striking out "subsection (b) or (c) of section 414" and inserting in lieu thereof "subsection (b), (c), or (m) of section 414", and

(c)

(B) by striking out "CONTROLLED GROUPS" in the paragraph heading and inserting in lieu thereof "CONTROLLED GROUPS, ETC.". EFFECTIVE DATES.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to plan years ending after November 30, 1980. (2) PLANS IN EXISTENCE ON NOVEMBER 30, 1980.—In the case of a plan in existence on November 30, 1980, the amendments made by this section shall apply to plan years beginning after November 30, 1980.

26 USC 414 note.

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