88 STAT. ]
PUBLIC LAW 93-406-SEPT. 2, 1974
979
transaction (within the meaning of section 503(b) of such Code) or the corresponding provisions of prior law; ^^ ^^^ ^°3. (C) the sale, exchange, or other disposition of property described in subparagraph (B) between a plan and a disqualified person before June 30, 1984, if— (i) in the case of a sale, exchange, or other disposition of the property by the plan to the disqualified person, the plan receives an amount which is not less than the fair market value of the property at the time of such disposition; and (ii) in the case of the acquisition of the property by the plan, the plan pays an amount which is not in excess of the fair market value of the property at the time of such acquisition; (D) Until June 30, 1977, the provision of services to which subparagraphs (A), (B), and (C) do not apply between a plan and a disqualified person (i) under a binding contract in effect on July 1, 1974 (or pursuant to renewals of such contract), or (ii) if the disqualified person ordinarily and customarily furnished such services on June 30, 1974, if such provision of services remains at least as favorable to the plan as an arm's-length transaction with an unrelated party would be and if the provision of services was not, at the time of such provision, a prohibited transaction (within the meaning of section 503(b) of such Code) or the corresponding provisions of prior law; or (E) the sale, exchange, or other disposition of property which is owned by a plan on June 30, 1974, and all times thereafter, to a disqualified person, if such plan is required to dispose of such property in order to comply with the provisions of section 407(a)(2)(A) (relating to the prohibition against holding excess employer securities and employer real property) of the Employee Retirement Income Security Act of 1974, and if the plan receives not less than adequate ^"'e, p. sso. consideration. For the purposes of this paragraph, the term "disqualified person" has the meaning provided by section 4975(e)(2) of the Internal Revenue Code of 1954. Ante, p. 971. SEC. 2004. LIMITATIONS ON BENEFITS AND CONTRIBUTIONS. (a) P L A N REQUIREMENTS.—
(1) Section 401(a) (relating to requirements for qualification) is amended by inserting after paragraph (15) the following new ^"^^> P- 938. paragraph: "(16) A trust shall not constitute a qualified trust under this section if the plan of which such trust is a part provides for benefits or contributions which exceed the limitations of section 415." infra. (2) Subpart B of part I of subchapter D of chapter 1 is amended by inserting after section 414 the following new section: "SEC. 415. LIMITATIONS ON BENEFITS AND CONTRIBUTION UNDER 26 USC 415. QUALIFIED PLANS. "(a)
GENERALRuiiE.—
"(1) TRUSTS.—A trust which is a part of a pension, profitsharing, or stock bonus plan shall not constitute a qualified trust under section 401(a) if— " (A) in the case of a defined benefit plan, the plan provides for the payment of benefits with respect to a participant which exceed the limitation of subsection (b), " (B) in the case of a defined contribution plan, contributions and other additions under the plan with respect to any
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