92 STAT. 2808
PUBLIC LAW 95-600—NOV. 6, 1978 then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid. "(B) CERTAIN RULES MADE APPLICABLE.—Rules similar to
the rules of subparagraphs (B) through (E) of paragraph (5) and of paragraph (6) shall apply for purposes of this paragraph." 26 USC 403.
(2) ROLLOVER FROM QUALIFIED ANNUITY PLANS.—Subparagraph
(B) of section 403(a)(4), as amended by section 21(b), is amended by striking out "paragraph (6)" and inserting lieu thereof "paragraphs (6) and (7)". 26 USC 408.
Ante, p. 2807. 26 USC 403. 26 USC 402 "°Ante, p. 2806.
(3) N o ROLLOVER TO QUALIFIED PLAN OR ANNUITY FROM IRA TO
WHICH SPOUSE MADE ROLLOVER CONTRIBUTION.—Subparagraph (B) of section 408(d)(3) is amended by adding at the end thereof the following: "Clause (ii) of subparagraph (A) shall not apply to any amount paid or distributed out of an individual retirement account or an individual retirement annuity to which an amount was contributed which was treated as a rollover contribution by section 402(a)(7) (or in the case of an individual retirement annuity, such section as made applicable by section 403(a)(4)(B))." (4) EFFECTIVE DATE.—The amendments made by this subsection shall apply to lump-sum distributions completed after December 31, 1978, in taxable years ending after such date. (h) REMOVAL OF CERTAIN REQUIREMENTS.— (1) DISREGARD OF 5-YEAR MINIMUM PARTICIPATION RULE FOR
PURPOSES OF ROLLOVERS.—Subclause (II) of section 402(a)(5)(D)(i) is amended by striking out "subsection (e)(4)(B)" and inserting in lieu thereof "subparagraphs (B) and (H) of subsection (e)(4)". 26 USC 408.
(2) REDUCTION OF REQUIRED PERIOD BETWEEN ROLLOVER CONTRIBUTIONS FROM 3 YEARS TO 1 YEAR.—The first Sentence of subpara-
graph (B) of section 408(d)(3) is amended by striking out "3-year period" and inserting in lieu thereof "1-year period". 26 USC 402
^^^^-
26 USC 402, 403
(3) EFFECTIVE DATE.—
(A) IN GENERAL.—The amendments made by this section shall apply to payments made in taxable years beginning after December 31, 1977. (B) TRANSITIONAL RULE.—In the case of any payment which is described in section 402(a)(5)(A) or 403(a)(4)(A) of the Internal Revenue Code of 1954 by reason of the amendments made by this section, the applicable period specified in section 402(a)(5)(C) of such Code (or in the case of an individual retirement annuity, such section as made applicable by section 403(a)(4)(B) of such Code) shall not expire before the close of December 31, 1978. (i) WAIVER OF EXCISE TAX ON CERTAIN ACCUMULATIONS IN INDIVIDUAL RETIREMENT ACCOUNTS OR ANNUITIES.—
26 USC 4974.
(1) GENERAL RULE.—Section 4974 (relating to excise tax on certain accumulations in individual retirement accounts or annuities) is amended by adding at the end thereof the following new subsection: "(c) WAIVER OF TAX IN CERTAIN CASES.—If the taxpayer establishes to the satisfaction of the Secretary that— "(1) the shortfall described in subsection (a) in the amount distributed during any taxable year was due to reasonable error, and "(2) reasonable steps are being taken to remedy the shortfall,
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