Page:United States Statutes at Large Volume 96 Part 2.djvu/1014

 96 STAT. 2376 26 USC 219.

PUBLIC LAW 97-448—JAN. 12, 1983 (2) CLARIFICATION OF AGE ToVa RULE.—Paragraph (1) of section 219(d) (relating to individuals who have attained age 70Vz) is amended to read as follows: "(1) BENEFICIARY MUST BE UNDER AGE TOVZ.—No deduction

shall be allowed under this section with respect to any qualified retirement contribution for the benefit of an individual if such individual has attained age 70 Vz before the close of such individual's taxable year for which the contribution was made." (3) DEFINITION OF QUALIFIED EMPLOYER PLAN.—

26 USC 72. Effective date. 26 USC 72 note.

(A) Paragraph (3) of section 219(e) (defining qualified employer plan) is amended by inserting "and" at the end of subparagraph (C), by striking out subparagraph (D), and by redesignating suljparagraph (E) as subparagraph (D). (B)(i) Paragraph (3) of section 72(p) (defining qualified employer plan, etc.) is amended by striking out without regard to subparagraph (D) thereof. (ii) The amendment made by clause (i) shall take effect as if the matter struck out had never been included in such paragraph. (4) CLARIFICATION OF DEFINITION OF COMPENSATION.—Para-

graph (1) of section 219(f) (defining compensation) is amended to read as follows: "(1) COMPENSATION.—For purposes of this section, the term 'compensation' includes earned income (as defined in section 401(c)(2)) reduced by any amount allowable as a deduction to the individual in computing adjusted gross income under paragraph (7) of section 62. The term 'compensation' does not include any amount received as a pension or annuity and does not include any amount received as deferred compensation." (5) TIME WHEN CERTAIN CONTRIBUTIONS DEEMED MADE.—

Subparagraph (B) of section 219(f)(3) (relating to time when contributions deemed made) is amended by striking out "the contribution is made" and inserting in lieu thereof "the contribution is made on account of the taxable year which includes such last day and". (6) CLARIFICATION OF ADDITIONAL TAX WHERE AMOUNTS RECEIVED BEFORE AGE 59 Va.—Subparagraph (A) of section 72(o)(2)

(relating to additional tax if amount received before age 59^2) is amended by striking out "to which the employee made one or more deductible employee contributions". (7) 10-YEAR AVERAGING AND CAPITAL GAINS PROVISIONS.—The 26 USC 402.

last sentence of subparagraph (A) of section 402(e)(4) (defining lump sum distribution) is amended by striking out "this section and section 403" and inserting in lieu thereof "this subsection, subsection (a)(2) of this section, and subsection (a)(2) of section 403". (8) ROLLOVER OF PARTIAL DISTRIBUTIONS EMPLOYEE CONTRIBUTIONS PERMITTED.—

OF DEDUCTIBLE

(A) Subparagraph (D) of section 402(a)(5) (relating to rollover amounts) is amended by adding at the end thereof the following new clause: "(v) ROLLOVER OF PARTIAL DISTRIBUTIONS OF DEDUCTIBLE EMPLOYEE CONTRIBUTIONS PERMITTED.—In the case

of any qualifying rollover distribution described in subclause (III) of clause (i), clause (i) of subparagraph (A) shall be applied by substituting 'any portion of the balance' for the balance'."

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