104 STAT. 1388-568 PUBLIC LAW 101-508 —NOV. 5, 1990 " (3) LIMITATION ON AMOUNT TRANSFERRED.— The amount of excess pension assets which may be transferred in a qualified transfer shall not exceed the amount which is reasonably estimated to be the amount the employer maintaining the plan will pay (whether directly or through reimbursement) out of such account during the taxable year of the transfer for qualified current retiree health liabilities. "(4) SPECIAL RULE FOR 1990. — "(A) IN GENERAL.— Subject to the provisions of subsection (c), a transfer shall be treated as a qualified transfer if such transfer— "(i) is made after the close of the taxable year preceding the employer's first taxable year beginning after December 31, 1990, and before the earlier of— "(I) the due date (including extensions) for the filing of the return of teix for such preceding taxable year, or "(II) the date such return is filed, and "(ii) does not exceed the expenditures of the employer for qualified current retiree health liabilities for such preceding taxable year. "(B) DEDUCTION REDUCED. —The amount of the deductions otherwise allowable under this chapter to an employer for the taxable year preceding the employer's first taxable year beginning after December 31, 1990, shall be reduced by the amount of any qualified transfer to which this paragraph applies. "(C) COORDINATION WITH REDUCTION RULE.— Subsection (e)(l)(B) shall not apply to a transfer described in subparagraph (A). "(5) EXPIRATION.—No transfer in any taxable year beginning after December 31, 1995, shall be treated as a qualified transfer. "(c) REQUIREMENTS OF PLANS TRANSFERRING ASSETS.— "(1) USE OF TRANSFERRED ASSETS.— "(A) IN GENERAL.— Any assets transferred to a health benefits account in a qualified transfer (and any income allocable thereto) shall be used only to pay qualified current retiree health liabilities (other than liabilities of key employees not taken into account under subsection (e)(l)(D)) for the taxable year of the transfer (whether directly or through reimbursement). "(B) AMOUNTS NOT USED TO PAY FOR HEALTH BENEFITS. — "(i) IN GENERAL.—Any assets transferred to a health benefits account in a qualified transfer (and any income allocable thereto) which are not used as provided in subparagraph (A) shall be transferred put of the account to the transferor plan. "(ii) TAX TREATMENT OF AMOUNTS. — Any amount transferred out of an account under clause (i)— "(I) shall not be includible in the gross income of the employer for such taxable year, but "(II) shall be treated as an employer reversion for purposes of section 4980 (without regard to subsection (d) thereof). "(C) ORDERING RULE.— For purposes of this section, any amount paid out of a health benefits account shall be
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