102 STAT. 3588 26 USC 401 note.
26 USC 415. 26 USC 401 note.
PUBLIC LAW 100-647—NOV. 10, 1988 (A) Paragraph (4) of section 1852(a) of the Reform Act is amended by adding at the end thereof the following new subparagraph: "(C) An individual whose required beginning date would, but for the amendment made by subparagraph (A), occur after December 31, 1986, but whose required beginning date after such amendment occurs before January 1, 1987, shall be treated as if such individual had become a 5-percent owner during the plan year ending in 1986," (B) Section 1852(h)(2) of the Reform Act is amended by striking out "section 416(1)" and inserting in lieu thereof "section 415(1)". (C) Section 1852(h)(l) of the Reform Act is amended by striking out "Subsection" and inserting in lieu thereof "Effective for years beginning after December 31, 1985, subsection". (D) Subparagraph (E) of section 408(d)(3) of the 1986 Code is amended by striking out "subparagraph" and inserting in lieu thereof "paragraph". (4) AMENDMENTS RELATED TO SECTION 1854 ACT.—
OF THE REFORM
(A) Section 404(k) of the 1986 Code is amended by striking out "avoidance" in the 4th sentence and inserting in lieu thereof "evasion". (B) Section 409(h)(2) of the 1986 Code (relating to plan may distribute cash) is amended by striking out "section 409(o)" and inserting in lieu thereof "paragraph (I)(B)". (C) Subparagraph (C) of section 409(n)(3) of the 1986 Code (defining nonallocation period) is amended to read as follows: "(C) NONALLOCATION PERIOD.—The term 'nonallocation period' means the period beginning on the date of the sale of the qualified securities and ending on the later of— "(i) the date which is 10 years after the date of sale, or "(ii) the date of the plan allocation attributable to the final payment of acquisition indebtedness incurred in connection with such sale." (D) Subparagraph (A) of section 1042(c)(4) of the 1986 Code (defining qualified replacement property) is amended by inserting ' (as in effect immediately before the Tax Reform Act of 1986)" after "section 954(c)(3)". (E) Clause (i) of section 1042(c)(4)(B) of the 1986 Code (relating to operating corporation) is amended by striking out "placement period" and inserting in lieu thereof
26 USC 409 note.
(F) Section 1854(a)(3)(B) of the Reform Act is amended by striking out "1042(b)(3)" and inserting in lieu thereof "1042(b)". (G) Subparagraph (C) of section 1854(a)(3) of the Reform Act is amended to read as follows: "(C)(i) Except as provided in clause (ii), the amendments made by this paragraph shall apply to sales of securities after the date of the enactment of this Act. "(ii) A taxpayer or executor may elect to have section 1042(b)(3) of the Internal Revenue Code of 1954 (as in effect before the amendment made by subparagraph (B)) apply to sales
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