88 STAT. ]
PUBLIC LAW 93-406-SEPT. 2, 1974
967
" (A) the amount contributed for the taxable year to the accounts or for the annuities or bonds (other than a rollover contribution described in section 402(a)(5), 403(a)(4), 408 ^°«;. PP. 99I. (d)(3)),or409(b)(3)(C),over _ 959; g e t " ' " " (B) the amount allowable as a deduction under section 219 for such contributions, and "(2) the amount determined under this subsection for the preceding taxable year, reduced by the excess (if any) of the maximum amount allowable as a deduction under section 219 for the ^"'^' P- ^^^• taxable year over the amount contributed to the accounts or for the annuities or bonds for the taxable year and reduced by the sum of the distributions out of the account (for all prior taxable years) which were included in the gross income of the payee under section 408(d)(1). For purposes of this paragraph, any contribution which is distributed out of the individual retirement account, individual retirement annuity, or bond in a distribution to which section 408(d)(4) applies shall be treated as an amount not contributed. "(c) SECTION 403(b) CONTRACTS.—For purposes of this section, in "Excess conthe case of a custodial account referred to in subsection (a)(3), the tributions." term 'excess contributions' means the sum of— "(1) the excess (if any) of the amount contributed for the taxable year to such account, over the lesser of the amount excludable from gross income under section 403(b) or the amount permitted 26 USC 403. to be contributed under the limitations contained in section 415 ^osf, p. 979. (or under whichever such section is applicable, if only one is applicable), and "(2) the amount determined under this subsection for the preceding taxable year, reduced by— " (A) the excess (if any) of the lesser of (i) the amount excludable from gross income under section 403(b) or (ii) the amount permitted to be contributed under the limitations contained in section 415 over the amount contributed to the account for the taxable year (or under whichever such section is applicable, if only one is applicable), and " (B) the sum of the distributions out of the account (for all prior taxable years) which are included in gross income under section 72(e)." 26 USC 72. (e)
EXCISE TAX ON EXCESSIVE ACCUMULATIONS.—Chapter 43
is
amended by inserting after section 4973 the following new section: "SEC. 4974. EXCISE TAX ON CERTAIN ACCUMULATIONS IN INDIVIDUAL RETIREMENT ACCOUNTS OR ANNUITIES. " (a) IMPOSITION OF TAX.—If, in the case of an individual retirement account or individual retirement annuity, the amount distributed during the taxable year of the payee is less than the minimum amount required to be distributed under section 408(a)(6) or (7), or 408(b) (3) or (4) during such year, there is imposed a tax equal to 50 percent of the amount by which the minimum amount required to be distributed during such year exceeds the amount actually distributed during the year. The tax imposed by this section shall be paid by such payee. "(b) REGULATIONS.—For purposes of this section, the minimum amount required to be distributed during a taxable year under section 408(a)(6) or (7) or 408(b)(3) or (4) shall be determined under regulations prescribed by the Secretary or his delegate.". (f)
PENALTY FOR FAILURE To
PROVIDE REPORTS ON INDIVIDUAL
RETIREMENT ACCOUNTS.—Subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the followins: new section:
26 USC 4974.
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