Page:United States Statutes at Large Volume 96 Part 1.djvu/566

 96 STAT. 524

Ante, p. 514.

PUBLIC LAW 97-248—SEPT. 3, 1982 "(iii) such plan benefits such employees as qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of key employees, or "(iv) in the case of a plan which is part of a cafeteria plan, the requirements of section 125 are met. "(B) EXCLUSION OF CERTAIN EMPLOYEES.—For purposes of subparagraph (A), there may be excluded from consideration— "(i) employees who have not completed 3 years of service; "(ii) part-time or seasonal employees; "(iii) employees not included in the plan who are included in a unit of employees covered by an agreement between employee representatives and one or more employers which the Secretary finds to be a collective bargaining agreement, if the benefits provided under the plan were the subject of good faith bargaining between such employee representatives and such employer or employers; and "(iv) employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)). "(4) NONDISCRIMINATORY BENEFITS.—A plan does not meet the requirements of paragraph (2)(B) unless all benefits available to participants who are key employees are available to all other participants. "(5) SPECIAL RULE.—A plan shall not fail to meet the requirements of paragraph (2)(B) merely because the amount of life insurance on behalf of the employees under the plan bears a uniform relationship to the total compensation or the basic or regular rate of compensation of such employees. "(6) KEY EMPLOYEE DEFINED.—For purposes of this subsection, the term 'key employee' has the meaning given to such term by paragraph (1) of section 416(i), except that subparagraph (A)(iv) of such paragraph shall be applied by not taking into account employees described in paragraph (3)(B) who are not participants in the plan. "(7) CERTAIN CONTROLLED GROUPS, ETC.—All employees

who are treated as employed by a single employer under subsection (b), (c), or (m) of section 414 shall be treated as employed by a single employer for purposes of this section." 26 USC 79 note. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1983. SEC. 245. LIMITATION ON ESTATE TAX EXCLUSIONS UNDER SECTION 2039. 26 USC 2039. (a) GENERAL RuLE.—Section 2039 (relating to annuities) is amended by adding at the end thereof the following new subsection: "(g) $100,000 LIMITATION ON EXCLUSIONS UNDER SUBSECTIONS (C)

AND (e).—The aggregate amount excluded from the gross estate of any decedent under subsections (c) and (e) of this section shall not exceed $100,000." (b) TECHNICAL AMENDMENTS.—Subsections (c) and (e) of section 2039 are each amended by striking out "Notwithstanding the provi-

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