Page:United States Statutes at Large Volume 96 Part 1.djvu/666

 96 STAT. 624

PUBLIC LAW 97-248—SEPT. 3, 1982 determined under tables (or other computational procedures) prescribed by the Secretary which a r e based on the a m o u n t of tax which would be imposed on such distribution under section 402(e) if the recipient elected to t r e a t such distribution as a lump-sum distribution (within the meaning of section 402(e)(4)(A)). "(C)

SPECIAL RULE

FOR DISTRIBUTIONS BY REASONS OF

DEATH.—In the case of any distribution described in subparagraph (B) from or under any plan or contract described in section 401(a), 403(a), or 403(b) which is made by reason of a participant's death, the Secretary, in prescribing tables or procedures under paragraph (1), shall t a k e into account the exclusion from gross income provided by section 101(b) (whether or not allowable). "(3) ELECTION OF NO W I T H H O L D I N G. —

"(A) IN GENERAL.—An individual may elect not to have paragraph (1) apply with respect to any nonperiodic distribution. "(B) SCOPE

OF ELECTION.—An

election

under

subpara-

g r a p h (A)— "(i) except as provided in clause (ii), shall be on a distribution-by-distribution basis, or "(ii) to the extent provided in regulations, may apply to subsequent nonperiodic distributions made by the payor to the payee under the same a r r a n g e m e n t. "(c) LIABILITY FOR W I T H H O L D I N G. —

"(1) IN GENERAL.—Except as provided in paragraph (2), the payor of a designated distribution (as defined in subsection (d)(1)) shall withhold, and be liable for, payment of the tax required to be withheld under this section. "(2) P L A N ADMINISTRATOR LIABLE IN CERTAIN CASES.—

"(A) IN GENERAL.—In the case of any plan to which this paragraph applies, paragraph (1) shall not apply and the plan a d m i n i s t r a to r shall withhold, and be liable for, payment of the tax unless the plan administrator— "(i) directs the payor to withhold such tax, and "(ii) provides the payor with such information as the Secretary may require by regulations. "(B) P L A N S TO WHICH

PARAGRAPH APPLIES.—This

para-

graph applies to any plan described in, or which at any time has been determined to be described in— "(i) section 401(a), "(ii) section 403(a), or "(iii) section 301(d) of the Tax Reduction Act of 1975.

26 USC 46 note. "(d)

DEFINITIONS

AND SPECIAL

RULES.—For

purposes

of

this

section— "(1) DESIGNATED DISTRIBUTION.—

"(A) IN GENERAL.—Except as provided in subparagraph (B), the term 'designated distribution' means any distribution or payment from or under— "(i) a n employer deferred compensation plan, "(ii) an individual retirement plan (as defined in section 7701(a)(37)), or "(iii) a commercial a n n u i t y. "(B) EXCEPTIONS.—The term 'designated distribution' shall not include—

�