72 S T A T J
PUBLIC LAW 85-866-SEPT. 2, 1958
(b) EFFECTIVE DATE.—The amendmeni made by subsection (a) shall apply with respect to estates of decedents dying after December 31, 1953. SEC. 68. GIFT TAX NOT TO APPLY TO ELECTION OF SURVIVOR BENEFITS UNDER CERTAIN QUALIFIED PLANS. (a) IN GENERAL.—Subchapter B of chapter 12 (relating to gift tax in the case of certain transfers) is amended by adding at the end thereof the following new section: "SEC. 2517. CERTAIN ANNUITIES UNDER QUALIFIED PLANS. " (a) GENERAL RULE.—The exercise or nonexercise by an employee of an election or option whereby an annuity or other payment will become payable to any beneficiary at or after the employee's death shall not be considered a transfer for purposes of this chapter if the option or election and annuity or other payment is provided for under— "(1) an employees' trust (or under a contract purchased by an employees' trust) forming part of a pension, stock bonus, or profit-sharing plan which, at the time of such exercise or nonexercise, or at the time of termination of the plan if earlier, met the requirements of section 401(a); or "(2) a retirement annuity contract purchased by an employer (and not by an employees' trust) pursuant to a plan which, at the time of such exercise or nonexercise, or at the time of termination of the plan if earlier, met the requirements of section 401(a) (3), (4), (5), and (6).
1659
26 USC 401.
•'(b) TRANSFERS ATTRIBUTABLE TO EMPLOYEE CONTRIBUTIONS.—If
the annuity or other payment referred to in subsection (a) is attributable to any extent to payments or contributions made by the employee, then subsection (a) shall not apply to that part of the value of such annuity or other payment which bears the same proportion to the total value of the annuity or other payment as the total payments or contributions made by the employee bear to the total payments or contributions made. "(c) EMPLOYEE DEFINED.—For purposes of this section, the term 'employee' includes a former employee." (b) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 12 is amended by adding at the end thereof the following: "See. 2517. Certain annuities under qualified plans."
(c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to the calendar year 1955 and all calendar years thereafter. For calendar years before 1955, the determination as to whether the exercise or nonexercise by an employee of an election or option described in section 2517 of the Internal Revenue Code of 1954 (as added by subsection (a)) is a transfer for purposes of chapter 4 of the Internal Revenue Code of 1939 shall be made as if this section had not been enacted and without inferences drawn from the fact that this section is not made applicable with respect to calendar years before 1955. SEC. 69. OASI COVERAGE FOR EMPLOYEES OF FOREIGN SUBSIDIARIES. The heading of section 3121(1)(3) (relating to agreements entered into by domestic corporations for the purpose of extending old-age and survivors insurance coverage to service performed by certain employees of foreign subsidiaries) is amended by striking out " B E " and inserting in lieu thereof "BY".
26 USC 3121.
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