PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-567 Subtitle B—Transfers to Retiree Health Accounts SEC. 12011. TRANSFER OP EXCESS PENSION ASSETS TO RETIREE HEALTH ACCOUNTS. (a) IN GENERAL. —Part I of subchapter D of chapter 1 (relating to pension, profit-sharing, and stock bonus plans) is amended by adding at the end thereof the following new subpart: Subpart E—Treatment of Transfers to Retiree Health Accounts "Sec. 420. Transfers of excess pension assets to retiree health accounts. "SEC. 420. TRANSFERS OF EXCESS PENSION ASSETS TO RETIREE HEALTH 26 USC 420. ACCOUNTS. "(a) GENERAL RULE.— If there is a qualified transfer of any excess pension assets of a defined benefit plan (other than a multiemployer plan) to a health benefits account which is part of such plan— "(1) a trust which is part of such plan shall not be treated as failing to meet the requirements of subsection (a) or (h) of section 401 solely by reason of such transfer (or any other action authorized under this section), "(2) no amount shall be includible in the gross income of the employer maintaining the plan solely by reason of such transfer, "(3) such transfer shall not be treated— "(A) as an employer reversion for purposes of section 4980, or "(B) as a prohibited transaction for purposes of section 4975, and "(4) the limitations of subsection (d) shall apply to such employer. "(b) QuAUPiED TRANSFER.—For purposes of this section— "(1) IN GENERAL. —The term 'qualified transfer' means a transfer— "(A) of excess pension assets of a defined benefit plan to a health benefits account which is part of such plan in a taxable year beginning after December 31, 1990, "(B) which does not contravene any other provision of law, and "(C) with respect to which the following requirements are met in connection with the plan— "(i) the use requirements of subsection (c)(l), "(ii) the vesting requirements of subsection (c)(2), and "(iii) the minimum cost requirements of subsection (0(3). "(2) ONLY i TRANSFER PER YEAR.— "(A) IN GENERAL. —No more than 1 transfer with respect to any plan during a taxable year may be treated as a qualified transfer for purposes of this section. "(B) EXCEPTION. — A transfer described in paragraph (4) shall not be taken into account for purposes of subparagraph (A).
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