Page:United States Statutes at Large Volume 95.djvu/312

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PUBLIC LAW 97-000—MMMM. DD, 1981

95 STAT. 286 26 USC 405. Ante, p. 274. 26 USC 2039. 26 USC 405 ^

PUBLIC LAW 97-34—AUG. 13, 1981 (1) The second sentence of paragraph (1) of section 405(d) is amended by striking out "the proceeds" and inserting "except as provided in paragraph (3), the proceeds". (2) Sections 219(d)(2) (as amended by section 311(a) of this Act), 408(a)(1), and 4973(b)(l)(A) are each amended by inserting "405(d)(3)," after "403(b)(8),". (3) Subsection (e) of section 2039 is amended by inserting "405(d)(3)," after "a contract described in subsection (c)(3)),". (c) EFFECTIVE DATE.—The amendments made by this section shall apply to redemptions after the date of the enactment of this Act in taxable years ending after such date. SEC. 314. MISCELLANEOUS PROVISIONS.

(a) REMOVAL OF FIVE-YEAR BAN ON CONTRIBUTIONS TO OWNEREMPLOYEE PLANS WHERE PLAN TERMINATES.—

26 USC 401.

26 USC 401 ^°^^-

(1) IN GENERAL.—Paragraph (5) of section 401(d) (relating to additional requirements for qualifications of trusts and plans benefiting owner-employees) is amended by adding at the end thereof the following: "Subparagraph (C) shall not apply to a distribution on account of the termination of the plan." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to distributions after December 31, 1980, in taxable years beginning after such date. (b) INVESTMENT BY INDIVIDUAL RETIREMENT ACCOUNTS, ETC., IN COLLECTIBLES TREATED AS DISTRIBUTIONS.—

26 USC 408.

(1) IN GENERAL.—Section 408 (relating to individual retirement accounts) is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: "(n) INVESTMENT IN COLLECTIBLES TREATED AS DISTRIBUTIONS.—

26 USC 408 "°*®

26 USC 402. 26 USC 402 "°*^®

"(1) IN GENERAL.—The acquisition by an individual retirement account or by an individually-directed account under a plan described in section 401(a) of any collectible shall be treated (for purposes of this section and section 402) as a distribution from such account in an amount equal to the cost to such account of such collectible. "(2) COLLECTIBLE DEFINED.—For purposes of this subsection, the term 'collectible' means— "(A) any work of art, "(B) any rug or antique, ' '(C) any metal or gem, "(D) any stamp or coin, "(E) any alcoholic beverage, or "(F) any other tangible personal property specified by the Secretary for purposes of this subsection." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to property acquired after December 31, 1981, in taxable years ending after such date. (c) TAXABILITY OF DISTRIBUTIONS TO EMPLOYEES.— (1) CONTRIBUTIONS MADE AVAILABLE.—Paragraph

(1) of section 402(a) (relating to taxability of beneficiary of exempt trust) is amended by striking out each place it appears "or made available". (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to taxable years beginning after December 31, 1981.