PUBLIC LAW 102-318—JULY 3, 1992 106 STAT. 305 be computed as if such distribution was made to a single trust, but the liability for such tax shall be apportioned among such trusts according to the relative amounts received by each. " (E) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph. "(3) ALLOWANCE OF DEDUCTION. —The total taxable amount of a lump sum distribution for any taxable year shall be allowed as a deduction from gross income for such taxable year, but only to the extent included in the taxpayer's gross income for such taxable year. "(4) DEFINITIONS AND SPECIAL RULES.— "(A) LUMP SUM DISTRIBUTION.— For purposes of this section and section 403, the term lump sum distribution' means the distribution or payment within 1 taxable year of the recipient of the balance to the credit of an employee which becomes payable to the recipient—
- (i) on account of the employee's death,
"(ii) after the employee attains age 59^2, "(iii) on account of the employee's separation from the service, or "(iv) after the employee has become disabled (within the meaning of section 72(m)(7)), from a trust which forms a part of a plan described in section 401(a) and which is exempt from tax under section 501 or from a plan described in section 403(a). Clause (iii) of this subparagraph shall be applied only witii respect to an individual who is an employee without regard to section 401(c)(l), and clause (iv) shall be applied only with respect to an employee within the meaning of section 401(c)(1). A distribution of an cmnuity contract from a trust or annuity plan referred to in the first sentence of this subparagraph shall be treated as a lump sum distribution. For purposes of this subparagraph, a distribution to 2 or more trusts shall be treated as a distribution to 1 recipient. For purposes of this subsection, the balance to the credit of the employee does not include the accumulated deductible employee contributions under the plan (within the meaning of section 72(o)(5)). "(B) AVERAGING TO APPLY TO i LUMP SUM DISTRIBUTION AFTER AGE 59V^.— Paragraph (1) shall apply to a lump sum distribution with respect to an employee under subparagraph (A) only if— "(i) such amount is received on or after the date on which the employee has attained age 59 ¥2, and "(ii) the taxpayer elects for the taxable year to have all such amounts received during such taxable year so treated. Not more thsui 1 election may be made under this subparagraph by any taxpayer with respect to any employee. No election may be made under this subparagraph by any taxpayer other than an individual, an estate, or a trust. In the case of a lump sum distribution made with respect to an employee to 2 or more trusts, the election under this subparagraph shall be made by the personal representative of the taxpayer.
�
