96 STAT. 514
26 USC 101.
PUBLIC LAW 97-248—SEPT. 3, 1982 SEC. 239. ALLOWANCE OF EXCLUSION OF DEATH BENEFIT FOR SELFEMPLOYED INDIVIDUALS. Paragraph (3) of section 101(b) (relating to self-employed individual not considered as employee) is amended to read as follows: "(3) T R E A T M E N T
O F SELF-EMPLOYED INDIVIDUALS.—For
pur-
poses of this subsection— "(A)
SELF-EMPLOYED
INDIVIDUAL
NOT
CONSIDERED
EMPLOYEE.—Except as provided in subparagraph (B), the term 'employee' does not include a self-employed individual described in section 401(c)(1). "(B)
SPECIAL
RULE
FOR CERTAIN
LUMP
SUM DISTRIBU-
TIONS.—In the case of any l u m p s u m distribution described in the second sentence of paragraph (2)(B), the term 'employee' includes a self-employed individual described in section 401(c)(1)." SEC. 240. SPECIAL RULES FOR TOP-HEAVY PLANS. (a) GENERAL RULE. — Subpart
B of part
I of subchapter
D of
chapter 1 (relating to special rules) is amended by adding a t the e n d thereof the following new section: 26 USC 416.
"SEC. 416. SPECIAL RULES FOR TOP-HEAVY PLANS.
"(a) GENERAL RULE. — A t r u s t shall not constitute a qualified t r u s t under section 401(a) for any plan year if the plan of which it is a part is a top-heavy plan for such plan year unless such plan meets— "(1) the vesting requirements of subsection (b), "(2) the minimum benefit requirements of subsection (c), and "(3) the limitation on compensation requirement of subsection (d). "(b) V E S T I N G REQUIREMENTS. —
"(1) IN GENERAL.—A plan satisfies the requirements of this subsection if it satisfies the requirements of e i the r of the following subparagraph s: "(A) 3-YEAR VESTING.—A plan satisfies the requirements of this subparagraph if a n employee who has completed a t least 3 years of service with the employer or employers m a i n t a i n i n g the plan has a nonforfeitable right to 100 percent of his accrued benefit derived from employer contributions. "(B) 6-YEAR GRADED VESTING.—A plan Satisfies the requirements of this subparagraph if a n employee has a nonforfeitable right to a percentage of his accrued benefit derived from employer contributions determined under the following table: "Years of service 2 3 4 5 6 or more
The nonforfeitable percentage is: 20 40 60 80 100
"(2) CERTAIN RULES MADE APPLICABLE.—Except to the e x t e n t
inconsistent with the provisions of this subsection, the rules of section 411 shall apply for purposes of this subsection. "(c) P L A N M U S T PROVIDE MINIMUM B E N E F I T S. — "(1) D E F I N E D BENEFIT PLANS.—
"(A) IN GENERAL.—A defined benefit plan meets the requirements of this subsection if the accrued benefit
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