PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2479
"(b) LIABILITY FOR TAX.—The tax imposed by subsection (a) shall be paid by the employer maintaining the plan. "(c) DEFINITIONS AND SPECIAL RULES.—For purposes of this section— "(1) QUALIFIED PLAN.—The term 'qualified plan' means any plan meeting the requirements of section 401(a) or 403(a), other than— V "(A) a plan maintained by an employer if such employer 1 r has, at all times, been exempt from tax under this subtitle, or "(B) a governmental plan (within the meaning of section I^v 414(d)). Such term shall include any plan which, at any time, has been determined by the Secretary to be a qualified plan. "(2) EMPLOYER REVERSION.—
"(A) IN GENERAL.—The term 'employer reversion' means the amount of cash and the fair market value of other property received (directly or indirectly) by an employer 'i0Y<,^ from the qualified plan. "(B) EXCEPTIONS.—The term 'employer reversion' shall not include— "(i) except as provided in regulations, any amount distributed to or on behalf of any employee (or his ' " beneficiaries) if such amount could have been so distributed before termination of such plan without violating any provision of section 401, or "(ii) any distribution to the employer which is allowable under section 401(a)(2)— ^^*-^*' "(I) in the case of a multiemployer plan, by reason of mistakes of law or fact or the return of ^ "i; '"*.'• _ any withdrawal liability payment, ' ^ • "(II) in the case of a plan other than a multiemployer plan, by reason of mistake of fact, or ^' "(III) in the case of any plan, by reason of the
" failure of the plan to initially qualify or the failure of contributions to be deductible. "(3) EXCEPTION FOR EMPLOYEE STOCK OWNERSHIP PLANS.—
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"(A) IN GENERAL.—If, upon an employer reversion from a qualified plan, any applicable amount is transferred from such plan to an employee stock ownership plan described in
- «ii<i«j section 4975(e)(7), such amount shall not be treated as an
^ y employer reversion for purposes of this section (or includ* ible in the gross income of the employer) if— "(i) the requirements of subparagraphs (B), (C), and (D) are met, and "(ii) under the plan, employer securities to which subparagraph (B) applies must remain in the plan until «*5ir.r: > distHbution to participants in accordance with the provisions of such plan. "(B) INVESTMENT IN EMPLOYER SECURITIES.—The require-
ments of this subparagraph are met if, within 90 days after the transfer (or such longer period as the Secretary may prescribe), the amount transferred is invested in employer securities (as defined in section 409(1)) or used to repay loans used to purchase such securities. "(C) ALLOCATION REQUIREMENTS.—The requirements of
this subparagraph are met if the portion of the amount
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