PUBLIC LAW 96-608—DEC. 28, 1980
94 STAT. 3551
SEC. 2. ROLLOVER TREATMENT FOR CERTAIN DISTRIBUTIONS FROM MONEY PURCHASE PENSION PLANS. (a) GENERAL RULE.—Paragraph (6) of section 402(a) of the Internal Revenue Code of 1954 (relating to special rollover rules) is amended 26 USC 402. by adding at the end thereof the following new subparagraph: "(E) SPECIAL RULE WHERE EMPLOYER MAINTAINS MONEY PURCHASE P E N S I O N PLAN AND OTHER PENSION PLAN.—
"(i) IN GENERAL.—In the case of any distribution from a money purchase pension plan which is maintained by an employer, for purposes of paragraph (5)(D)(i)(II), subsection (e)(4)(C) shall be applied by not taking into account any pension plan maintained by such employer which is not a money purchase pension plan. The preceding sentence shall not apply to any distribution which is a qualifying rollover distribution without regard to this subparagraph. (ii) TREATMENT OF SUBSEQUENT DISTRIBUTIONS.—If—
"(I) any distribution of the balance to the credit of an employee from a money purchase pension plan maintained by an employer is treated as a qualifying rollover distribution by reason of clause (i), and (II) any portion of such distribution is transferred in a transfer to which paragraph (5)(A) applies, then paragraph (2) of subsection (a), and paragraphs (1) and (3) of subsection (e), shall not apply to any distribution (after the taxable year in which the distribution described in subparagraph (A) of paragraph (5) is made) of the balance to the credit of such employee from any other pension plan maintained by such employer." (b) EFFECTIVE DATES.— 26 USC 402 note. (1) IN GENERAL.—The amendment made by subsection (a) shall apply to payments made in taxable years beginning after December 31, 1978. (2) TRANSITIONAL RULE.—In the case of any payment made before January 1, 1982, in a taxable year beginning after December 31, 1978, which is treated as a qualifying rollover distribution (as defined in section 402(a)(5)(D)(i) of the Internal Revenue Code of 1954) by reason of the amendment made by subsection (a), the applicable period specified in section 402(a)(5)(C) of such Code shall not expire before the close of December 31, 1981. SEC. 3 TREATMENT OF CERTAIN REPAYMENTS OF SUPPLEMENTAL . UNEMPLOYMENT COMPENSATION BENEFITS. (a) GENERAL RULE.—Section 62 of the Internal Revenue Code of 1954 (defining adjusted gross income) is amended by inserting after 26 USC 62. paragraph (15) the following new paragraph: "(16) CERTAIN REQUIRED REPAYMENTS OF SUPPLEMENTAL UNEMPLOYMENT COMPENSATION BENEFITS.—The deduction allowed by
section 165 for the repayment to a trust described in paragraph 26 USC 165. (9) or (17) of section 501(c) of supplemental unemployment 26 USC 501. compensation benefits received from such trust if such repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 1974 (19 U.S.C. 2291 and 2292)." Ob) EFFECTIVE DATE.—The amendment made by subsection (a) shall 26 USC 62 note. apply to repayments made in taxable years beginning after the date of the enactment of this Act.