PUBLIC LAWS-CH. 619-OCT. 21 , 1942 53 Stat. 15. 26U.S. C. 23 (P). Ante, p. 818. Ante, p. 864. 53 Stat. 33. 26U.S .C. § 101 (6). Plans in effect on or before Sept. 1, 1942. Ante, pp . 862,863. Ante, pp. 862, 863. Ante, p. 863. Ante, pp. 819,863. Ante. p. 863. 1938 (52 Stat. 464), or the Internal Revenue Code for a taxable year beginning before January 1, 1943, which under such section was apportioned to any taxable year beginning after December 31, 1942, shall be allowed as a deduction for the years to which so apportioned to the extent allowable under such section if it had remained in force with respect to such year,". (c) EMPLOYEES' ANNUITIES.-Section 22 (b) (2) (relating to taxa- tion of annuities) is amended by inserting at the end thereof the following new subparagraph: "(B) Employees' Annuities.- I f an annuity contract is purchased by an employer for an employee under a plan with respect to which the employer's contribution is deducti- ble under section 23 (p) (1) (B), or if an annuity contract is purchased for an employee by an employer exempt under section 101 (6), the employee shall include in his income the amounts received under such contract for the year received except that if the employee paid any of the consideration for the annuity, the annuity shall be included in his income as provided in subparagraph (A) of this paragraph, the con- sideration for such annuity being considered the amount contributed by the employee. In all other cases, if the employee's rights under the contract are nonforfeitable except for failure to pay future premiums, the amount contributed by the employer for such annuity contract on or after such rights become nonforfeitable shall be included in the income of the employee in the year in which the amount is con- tributed, which amount together with any amounts contrib- uted by the employee shall constitute the consideration paid for the annuity contract in determining the amount of the annuity required to be included in the income of the employee under subparagraph (A) of this paragraph." (d) TAXABLE YEARS TO WHICH AMENDMENTS APPLICABLE.- The amendments made by this section shall be applicable as to both the employer and employees only with respect to taxable years of the employer beginning after December 31, 1941, except that- (1) In the case of a stock bonus, pension, profit-sharing, or annuity plan in effect on or before September 1, 1942, (A) such a plan shall not become subject to the requirements of section 165 (a) (3), (4), (5), and (6) until the beginning of the first taxable year beginning after December 31,1942, (B) such a plan shall be considered as satisfying the require- ments of section 165 (a) (3), (4), (5), and (6) for the period beginning with the beginning of the first taxable year following December 31, 1942, and ending December 31, 1943, if the plan satisfies such requirements by December 31, 1943, (C) if the contribution of an employer to such a plan in the employer's taxable year beginning in 1942 exceeds the maximum amount deductible for such year under section 23 (p) (1), as amended by this section, the amount deductible in such year shall be not less than the sum of- (i) the amount paid in such taxable year prior to Septem- ber 1, 1942, and deductible under section 23 (a) or 23 (p) prior to amendment by this section, and (ii) with respect to the amount paid in such taxable year on or after September 1, 1942, that proportion of the amount deductible for the taxable year under section 23 (p) (1), as amended by this section, which the number of months after August 31, 1942, in the taxable year bears to twelve. 866 [56 STAT.
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