PUBLIC LAW 95-600—NOV. 6, 1978
92 STAT. 2801
60 consecutive days of service with the employer or employers maintaining the plan. This paragraph shall not apply to a participant whose compensation for any 3 years during the 10-year period immediately preceding the year in which he separates from service exceeded the average compensation for such 3 years of all participants in such plan. For any year for which the paragraph applies to benefits with respect to a participant, paragraph (1)(A) and subsection (d)(1)(A) shall be applied with respect to such participant by substituting '37,500' for '75,000'." (b) EFFECTIVE DATE.—The amendment made by this section shall 26 USC 415 apply to years beginning after December 31, 1978. "ote. SEC. 154. CUSTODIAL ACCOUNTS FOR REGULATED INVESTMENT COMPANY STOCK. (a) AMENDMENT OF SECTION 403.—Subparagraph (A) of section 403(b)(7) (relating to custodial accounts for regulated investment 26 USC 403. company stock) is amended to read as follows: "(A) AMOUNTS PAID TREATED AS CONTRIBUTIONS.—For purposes of this title, amounts paid by an employer described in paragraph (1)(A) to a custodial account which satisfied the requirements of section 401(f)(2) shall be treated as amounts 26 USC 401. contributed by him for an annuity contract for his employee if— "(i) the amounts are to be invested in regulated investment company stock to be held in that custodial account, and "(ii) under the custodial account no such amounts may be paid or made available to any distributee before the employee dies, attains age 59 y2, separates from service, becomes disabled (within the meaning of section 72(m)(7)), or encounters financial hardship." 26 USC 72. (b) EFFECTIVE DATE.—The amendment made by this section shall 26 USC 403 apply to taxable years beginning after December 31, 1978. "o^e. SEC. 155. PENSION PLAN RESERVES. (a) IN GENERAL.—Subsection (d) of section 805 (relating to pension 26 USC 805. plan reserves) is amended— (1) by striking out "or" at the end of paragraph (4); (2) by striking out the period at the end of paragraph (5) and inserting in lieu thereof "; or"; and (3) by adding at the end thereof the following new paragraph: "(6) purchased by— "(A) a governmental plan (within the meaning of section 414(d)), or 26 USC 414. "(B) the Government of the United States, the government of any State or political subdivision thereof, or by any agency or instrumentality of the foregoing, for use in satisfying an obligation of such government, political subdivision, or agency or instrumentality to provide a benefit under a plan described in subparagraph (A)." Ob) EFFECTIVE DATE.—The amendments made by this section apply 26 USC 805 to taxable years beginning after December 31, 1978. "ot^SEC. 156. ROLLOVER OF SECTION 403(b) ANNUITIES PERMITTED. (a) GENERAL RULE.—Subsection (b) of section 403 (relating to
26 USC 403.
taxability of beneficiary under annuity purchased by section 501(c)(3) 26 USC 501. organization or public school) is amended by adding at the end thereof the following new paragraph:
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