Page:United States Statutes at Large Volume 98 Part 1.djvu/921

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 873

provisions which may be incorporated in a plan to meet the requirements of section 401(a)(10)(B)(ii) of such Code. (2) EFFECT OF INCORPORATION.—If a plan is amended to incorporate the plan amendment provisions described in paragraph (1), such plan shall be treated as meeting the requirements of section 401(a)(10)(B)(ii) of the Internal Revenue Code of 1954 during the period such amendment is in effect but not later than 6 months after the final regulations described in paragraph (1) are published. (3) FAILURE BY SECRETARY TO PUBLISH.—If the Secretary of the

Treasury or his delegate does not publish plan amendment provisions described in paragraph (1), the plan shall be treated as meeting the requirements of section 401(a)(10)(B) of the Internal Revenue Code of 1954 if— (A) such plan is amended to incorporate such requirements by reference, except that (B) in the case of any optional requirement under section 416 of such Code, if such amendment does not specify the manner in which such requirement will be met, the employer shall be treated as having elected the requirement with respect to each employee which provides the maximum vested accrued benefit for such employee. SEC. 525. REPEAL OF ESTATE TAX EXCLUSION FOR QUALIFIED PENSION PLAN BENEFITS. (a) IN GENERAL.—Section 2039 (relating to inclusion in the gross 26 USC 2039. estate of annuities) is amended by striking out subsections (c), (d), (e), if), and (g) and inserting in lieu thereof the following new subsection: "(c) EXCEPTION OF CERTAIN ANNUITY INTERESTS CREATED BY COMMUNITY PROPERTY LAWS.—

"(1) IN GENERAL.—In the case of an employee on whose behalf contributions or payments were made by his employer or former employer under a trust, plan, or contract to which this subsection applies, if the spouse of such employee predeceases such employee, then notwithstanding any provision of law, there shall be excluded from the gross estate of such spouse the value of any interest of such spouse in such trust, plan, or contract, to the extent such interest— "(A) is attributable to such contributions or payments, and "(B) arises solely by reason of such spouse's interest in community income under the community property laws of a State. "(2)

TRUSTS, PLANS, AND CONTRACTS TO WHICH SUBSECTION

APPLIES.—This subsection shall apply to— "(A) any trust, plan, or contract which at the time of the decedent's separation from employment (by death or otherwise), or if earlier, at the time of termination of the plan— "(i) formed part of a plan which met the requirements of section 401(a), or "(ii) was purchased pursuant to a plan described in section 403(a), or "(B) a retirement annuity contract purchased for an employee by an employer which is— "(i) an organization referred to in clause (ii) or (vi) of section 170(b)(1)(A), or

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