26 USC 401. 26 USC 403, 405. Ante, p. 898. Post, p. 979. Post, p. 971. September 2, 1974 more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who maintained the plan, or "(C) in any case to which subparagraph (A) or (B) does not apply, such other person as the Secretary or his delegate may by regulation, prescribe. "(h) TAX TREATMENT OF CERTAIN CONTRIBUTIONS.— "(1) IN GENERAL.-Effective with respect to taxable years beginning after December 31, 1973, for purposes of this title, any amount contributed or "(A) to an employees' trust described in section 401(a), o "(B) under a plan described in section 403 (a) or 405 (a), shall not be treated as having been made by the employer if it is designated as an employee contribution. "(2) DESIGNATION BY UNITS OF GOVERNMENT.-For purposes of paragraph (1), in the case of any plan established by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing, where the contributions of employing units are designated as employee contributions but where any employing unit picks up the contributions, the contributions so picked up shall be treated as employer contributions. "(i) DEFINED CONTRIBUTION PLAN.-For purposes of this part, the term 'defined contribution plan' means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant's account. "(j) DEFINED BENEFIT PLAN.-For purposes of this part, the term 'defined benefit plan' means any plan which is not a defined contribution plan. "(k) CERTAIN PLANS.-A defined benefit plan which provides a benefit derived from employer contributions which is based partly on the balance of the separate account of a participant shall— "(1) for purposes of section 410 (relating to minimum participation standards), be treated as a defined contribution plan, "(2) for purposes of sections 411(a) (7) (A) (relating to minimum vesting standards) and 415 (relating to limitations on benefits and contributions under qualified plans), be treated as consisting of a defined contribution plan to the extent benefits are based on the separate account of a participant and as a defined benefit plan with respect to the remaining portion of benefits under the plan, and "(3) for purposes of section 4975 (relating to tax on prohibited transactions), be treated as a defined benefit plan. "(1) MERGERS AND CONSOLIDATIONS OF PLANS OR TRANSFERS OF PLAN ASSETS.A trust which forms a part of a plan shall not constitute a qualified trust under section 401 and a plan shall be treated as not described in section 403 (a) or 405 unless in the case of any merger or consolidation of the plan with, or in the case of any transfer of assets or liabilities of such plan to, any other trust plan after the date of the enactment of the Employee Retirement Income Security Ante, p. 829. Act of 1974, each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). This paragraph September 2, 1974 - 101 Pub. Law 93-406 88 STAT. 929 shall apply in the case of a multiemployer plan only to the extent determined by the Pension Benefit Guaranty Corporation." SEC. 1016. CONFORMING AND CLERICAL AMENDMENTS. (a) CONFORMING AMENDMENTS. (1) Section 275 (a) (relating to denial of deduction for certain taxes) is amended by adding at the end thereof the following new paragraph: "(6) Taxes imposed by chapter 42 and chapter 43." (2) Section 401 (a) (relating to requirements for qualification) is amended (A) by striking out paragraph (3) and inserting in lieu thereof: 26 USC 275. 26 USC 4940. Ante, p. 920. "(3) if the plan of which such trust is a part satisfies the requirements of section 410 (relating to minimum participation Ante, p. 898. standards); and", (B) by striking out "paragraph (3) (B) or (4)" in paragraph (5) and inserting in lieu thereof "paragraph (4) or section 410(b) (without regard to paragraph (1)(A) thereof)", and (C) by striking out paragraph (7) and inserting in lieu thereof: "(7) A trust shall not constitute a qualified trust under this section unless the plan of which such trust is a part satisfies the requirements of section 411 (relating to minimum vesting standards)." (3) Section 404 (a)(2) (relating to deduction for contributions of an employer to an employee's annuity plan) is amended by striking out "and (8)," and inserting in lieu thereof “(8), (11), (12), (13), (14), and (15)". Ante, p. 901. 26 USC 404. (4) Section 406 (b) (1) (relating to certain employees of foreign subsidiaries) is amended by striking out "paragraphs (3) (B) and (4) of section 401(a)” and inserting in lieu thereof "section 401(a) (4) and section 410 (b) (without regard to paragraph Post, p. 938. (1) (A) thereof)". (5) Section 407 (b) (1) (relating to certain employees of domestic subsidiaries engaged in business outside the United States) is amended by striking out "paragraph (3) (B) and (4) of section 401(a)" and inserting in lieu thereof "section 401 (a) (4) and section 410 (b) (without regard to paragraph (1)(A) thereof)". (6) Section 805 (d) (1) (C) (relating to definition of pension plan reserves) is amended by striking out "and (8)" and inserting in lieu thereof “(8), (11), (12), (13), (14), and (15)”. (7) Section 6161(b) (1) (relating to extensions of time for pay- 26 USC 6161. ing tax) is amended by striking out "or 42" and inserting in lieu thereof "42 or 43". The second sentence of section 6161(b) is amended by striking out "or 42" and inserting in lieu thereof ", 42, or chapter 43". (8) Section 6201 (d) (relating to assessment authority) is amended by striking out "and chapter 42" and inserting in lieu thereof", chapter 42, and chapter 43". (9) Section 6211 (defining deficiency) is amended (A) by striking out so much of subsection (a) as precedes paragraph (1) thereof and inserting in lieu thereof the following: 26 USC 1, "(a) IN GENERAL.-For purposes of this title in the case of income, estate, and gift taxes imposed by subtitles A and B and excise taxes imposed by chapters 42 and 43, the term 'deficiency' means the amount 2001. 88 STAT. 930 26 USC 1, 2001, 4940. Ante, p. 920. 26 USC 6212. Ante, p. 920. Post, p. 971. Pub. Law 93-406 · 102 September 2, 1974 by which the tax imposed by subtitle A or B, or chapter 42 or 43, exceeds the excess of-"; and (B) by striking out "chapter 42" in subsection (b) (2) and inserting in lieu thereof "chapter 42 or 43". (10) Section 6212 (relating to notice of deficiency) is amended— (A) by striking out "chapter 42" in subsection (a) and inserting in lieu thereof "chapter 42 or 43", (B) by striking out "or chapter 42" in subsection (b) (1) and inserting in lieu thereof "chapter 42, or chapter 43", (C) by striking out "chapter 42, and this chapter" in subsection (b) (1) and inserting in lieu thereof "chapter 42, chapter 43, and this chapter", and (D) by striking out "of the same decedent," in subsection (c) and inserting in lieu thereof "of the same decedent, of chapter 43 tax for the same taxable years,”. (11) Section 6213 (relating to restrictions applicable to deficiencies and petition to Tax Court) is amended (A) by striking out "or chapter 42" in subsection (a) and inserting in lieu thereof ", chapter 42 or 43", (B) by striking out the heading of subsection (e) and inserting in lieu thereof: "(e) SUSPENSION OF FILING PERIOD FOR CERTAIN EXCISE TAXES.—" (C) by striking out “or 4945 (relating to taxes on taxable expenditures)" in subsection (e) and inserting in lieu thereof "4945 (relating to taxes on taxable expenditures), 4971 (relating to excise taxes on failure to meet minimum funding standard), 4975 (relating to excise taxes on prohibited transactions)"; and (D) by striking out "or 4945 (h) (2)" in subsection (e) and inserting in lieu thereof “, 4945 (i) (2), 4971(c)(3), or 4975 (f) (4),". (12) Section 6214 (relating to determinations by Tax Court) is amended (A) by amending the heading of subsection (c) to read as follows: "(c) TAXES IMPOSED BY SECTION 507 OR CHAPTER 42 OR 43.—”, (B) by inserting after "chapter 42" each place it appears in subsection (c) "or 43"; and (C) by striking out "chapter 42" in subsection (d) and inserting in lieu thereof "chapter 42 or 43". (13) Section 6344(a)(1) (relating to cross references) is amended by striking out "chapter 42" and inserting in lieu thereof "chapter 42 or 43". (14) Section 6501 (e) (3) (relating to limitations on assessment and collection) is amended by striking out "chapter 42" and inserting in lieu thereof "chapter 42 or 43". (15) Section 6503 (relating to suspension of running of period of limitations) is amended-- (A) by striking out "chapter 42 taxes)" in subsection (a) (1) and inserting in lieu thereof "certain excise taxes)", and (B) by inserting after "section 507" in subsection (h) "or section 4971 or section 4975", and by striking out "or 4945 (h) (2)" in subsection (h) and inserting in lieu thereof “4945 (i) (2), 4971 (c) (3), or 4975 (f) (4)”. (16) Section 6512 (relating to limitations in case of petition to Tax Court) is amended by striking out "chapter 42" each place it appears therein and inserting in lieu thereof "chapter 42 or 43". (17) Section 6601 (d) (relating to interest on underpayment, September 2, 1974 - 103 Pub. Law 93-406 88 STAT. 931 nonpayment, or extensions of time for payment of tax) is amended by (A) striking out in the heading thereof "CHAPTER 42” and inserting in lieu thereof "CHAPTER 42 OR 43", and 26 USC 4940. (B) striking out “chapter 42” and inserting in lieu thereof Ante, p. 920. "certain excise". (18) Section 6653(c)(1) (relating to income, estate, gift, and 26 USC 6653. chapter 42 taxes) is amended by striking out "chapter 42" each place it appears therein (including the heading) and inserting in lieu thereof "certain excise". (19) Section 6659 (b) (relating to applicable rules) is amended by striking out "chapter 42" and inserting in lieu thereof "certain excise". (20) Section 6676 (b) (relating to failure to supply identifying numbers) is amended by striking out "chapter 42" and inserting in lieu thereof "and certain excise". (21) Section 6677(b) (relating to failure to file information returns with respect to certain foreign trusts) is amended by striking out "chapter 42" and inserting in lieu thereof "and certain excise". (22) Section 6679 (b) (relating to failure to file returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock) is amended by striking out "chapter 42" and inserting in lieu thereof "and certain excise". (23) Section 6682 (b) (relating to false information with respect to withholding allowances based on itemized deductions) is amended by striking out "chapter 42" and inserting in lieu thereof "and certain excise". (24) The heading of section 6861 (relating to jeopardy assessments of income, estate, and gift taxes) is amended by striking out "and gift taxes.", and inserting in lieu thereof ", gift, and certain excise taxes.". (25) Section 6862 (relating to jeopardy assessment of taxes other than income, estate, and gift taxes) is amended (A) by striking out "and Gift Taxes.", in the heading and inserting in lieu thereof ", Gift, and Certain Excise Taxes.", (B) by striking out "and gift tax)" in subsection (a) and inserting in lieu thereof "gift tax, and certain excise taxes)”. (26) Section 7422 (relating to civil actions for refund) is amended (A) by striking out "chapter 42" and inserting in lieu thereof "chapter 42 or 43" in subsection (e), (B) by striking out "CHAPTER 42" in the heading of subsection (g) and inserting in lieu thereof "CHAPTER 42 or 43", (C) by striking out "or 4945" in subsection (g) (1) and inserting in lieu thereof "4945, 4971, or 4975”, 26 USC 4945. (D) by striking out "section 4945 (a) (relating to initial Ante, p. 920; taxes on taxable expenditures)" in subsection (g) (1) and Post, p. 971. inserting in lieu thereof "section 4945 (a) (relating to initial taxes on taxable expenditures), 4971(a) (relating to initial tax on failure to meet minimum funding standard), 4975 (a) (relating to initial tax on prohibited transactions)", (E) by striking out "or section 4945 (b) (relating to additional taxes on taxable expenditures)" in subsection (g) (1) and inserting in lieu thereof "section 4945 (b) (relating to additional taxes on taxable expenditures), section 4971 (b) (relating to additional tax on failure to meet minimum fund 88 STAT. 932 26 USC 4945. Ante, p. 9201 Post, p. 971. 26 USC 410 note. Pub. Law 93-406 - 104 September 2, 1974 ing standard), or section 4975 (b) (relating to additional tax on prohibited transactions)", and (F) by striking out "or 4945" in paragraphs (2) and (3) of subsection (g) and inserting in lieu thereof "4945, 4971, or 4975". (27) Section 6204 (b) (relating to supplemental assessments) is amended by striking out "and gift taxes" and inserting in lieu thereof "gift, and certain excise taxes". (b) CLERICAL AMENDMENTS. (1) Part I of subchapter D of chapter 1 is amended by inserting after the heading and before the table of sections the following: "Subpart A. General rule. "Subpart A-General Rule". (2) The table of chapters for subtitle D is amended by adding at the end thereof the following new item: "CHAPTER 43. Qualified pension, etc., plans." (3) The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to the section captioned "Assessable penalties with respect to information required to be furnished under section 7654" and inserting in lieu thereof: "Sec. 6688. Assessable penalties with respect to information required to be furnished under section 7654." (4) Subchapter B of chapter 68 is amended by striking out the heading of the section immediately preceding section 6689 and inserting in lieu thereof: "SEC. 6688. ASSESSABLE PENALTIES WITH RESPECT TO INFORMATION REQUIRED TO BE FURNISHED UNDER SECTION 7654." (5) The table of sections for part II of subchapter A of chapter 70 is amended by striking out "and gift taxes" in the items relating to sections 6861 and 6862 and inserting in lieu thereof "gift, and certain excise taxes". SEC. 1017. EFFECTIVE DATES AND TRANSITIONAL RULES. (a) GENERAL RULE.-Except as otherwise provided in this section, the amendments made by this part shall apply for plan years beginning after the date of the enactment of this Act. (b) EXISTING PLANS.-Except as otherwise provided in subsections (c) through (h), in the case of a plan in existence on January 1, 1974, the amendments made by this part shall apply for plan years beginning after December 31, 1975. (c) EXISTING PLANS UNDER COLLECTIVE BARGAINING AGREE MENTS. (1) APPLICATION OF VESTING RULES TO CERTAIN PLAN PRO VISIONS. (A) WAIVER OF APPLICATION.--In the case of a plan maintained on January 1, 1974. pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements between employee representatives and one or more employers, during the special temporary waiver period the plan shall not be treated as not meeting the requirements of section 411(b) (1) or (2) of the Internal Revenue Code of 55-202 O 76-8 |