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PUBLIC LAW 87-792-OCT. 10, 1962
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Post. p.812.
Post. p. 812. 26 USC 401.
Post, p. 818. 26 USC 404. Post, p. 820.
[76 STAT.
accrued to the date of such termination or discontinuance, to the extent then funded, or the amounts credited to the employees' accounts are nonforfeitable. This paragraph shall not apply to benefits or contributions which, under provisions of the plan adopted pursuant to regulations prescribed by the Secretary or his delegate to preclude the discrimination prohibited by paragraph (4), may not be used for designated employees in the event of early termination of the plan. " (8) A trust forming part of a pension plan shall not constitute a qualified trust under this section unless the plan provides that forfeitures must not be applied to increase the benefits any employee would otherwise receive under the plan. "(9) I n the case of a plan which provides contributions or benefits for employees some or all of whom are employees within the meaning of subsection (c)(1), a trust forming part of such plan shall not constitute a qualified trust under this section unless, under the plan, the entire interest of each employee— " (A) either will be distributed to him not later than his taxable year in which he attains the age of 70i/^ years, or, in the case of an employee other than an owner-employee (as defined in subsection (c)(3)), in which he retires, whichever is the later, or " (B) will be distributed, commencing not later than such taxable year, (i) in accordance with regulations prescribed by the Secretary or his delegate, over the life of such employee or over the lives of such employee and his spouse, or (ii) in accordance with such regulations, over a period not extending beyond the life expectancy of such employee or the life expectancy of such employee and his spouse. A trust shall not be disqualified under this paragraph by reason of distributions under a designation, prior to the date of the enactment of this paragraph, by any employee under the plan of which such trust is a part, of a method of distribution which does riot meet the terms of the preceding sentence. "(10) I n the case of a plan which provides contributions or benefits for employees some or all of whom are owner-employees (as defined in subsection (c)(3)) — " (A) paragraph (3) and the first and seconds sentences of paragraph (5) shall not apply, but— " (i) such plan shall not be considered discriminatory withinthemeaningof paragraph (4) merely because the contributions or benefits of or on behalf of employees under the plan bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of such employees, and "(ii) such plan shall not be considered discriminatory within the meaning of paragraph (4) solely because under the plan contributions described in subsection (e) (3)(A) which are'in excess of the amounts which may be deducted under section 404 '(determined without regard to section 404(a) (10)) for the taxable year may be made on behalf of any owner-employee; and
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