102 STAT. 3468
PUBLIC LAW 100-647—NOV. 10, 1988 (5) Subparagraph (B) of section 408(k)(3) of the 1986 Code is amended to read as follows: "(B) SPECIAL RULES.—For purposes of subparagraph (A), there shall be excluded from consideration employees described in subparagraph (A) or (C) of section 410(b)(3)." 0') AMENDMENTS RELATED TO SECTION 1115 OF THE REFORM ACT.—
26 USC 416 note.
(1) So much of section 414(s) of the 1986 Code as precedes paragraph (2) is amended to read as follows: "(s) COMPENSATION.—For purposes of any applicable provision— "(1) IN GENERAL.—Except as provided in this subsection, the term 'compensation' has the meaning given such term by section 415(c)(3)." (2) Section 414(s) of the 1986 Code is amended by striking out paragraph (2), by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively, and by adding at the end thereof the following new paragraph: "(4) APPLICABLE PROVISION.—For purposes of this subsection, the term 'applicable provision' means any provision which specifically refers to this subsection." (3)(A) Section 416(i)(l) of the 1986 Code (defining key employee) is amended by adding at the end thereof the following new subparagraph: "(D) COMPENSATION.—For purposes of this paragraph, the term 'compensation' has the meaning given such term by section 414(q)(7)." (B) The amendment made by tWs paragraph shall apply to years beginning after December 31, 1988. (k) AMENDMENTS RELATED TO SECTION 1116 OF THE REFORM ACT.—
dXA) Subparagraph (B) of section 401(k)(2) of the 1986 Code (relating to distributions from a cash or deferred arrangement) IS amended— (i) by striking out subclauses (11), (III), and (IV) of clause (i) and inserting in lieu thereof: "(II) an event described in paragraph (10),", and (ii) by redesignating subclauses (V) and (VI) as subclauses (III) and (IV), respectively. (B) Section 401(k) of the 1986 (IJode is amended by adding at the end thereof the following new paragraph: "(10) DISTRIBUTIONS UPON TERMINATION OF PLAN OR DISPOSITION OF ASSETS OR SUBSIDIARY —
"(A) IN GENERAL.—The following events are described in this paragraph: "(i) TERMINATION.—The termination of the plan without establishment or maintenance of another defined contribution plan (other than an employee stock ownership plan as defined in section 4975(e)(7)). ' (ii) DISPOSITION OF ASSETS.—The disposition by a
corporation of substantially all of the assets (within the meaning of section 409(d)(2)) used by such corporation in a trade or business of such corporation, but only with respect to an employee who continues employment with the corporation acquiring such assets. "(iii) DISPOSITION OF SUBSIDIARY.—The disposition by
a corporation of such corporation's interest in a subsidiary (within the meaning of section 409(d)(3)), but only with respect to an employee who continues employment with such subsidiary.
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