Opinion ID: 1584429
Heading Depth: 1
Heading Rank: 12

Heading: history; ancillary laws and directives

Text: AMENDMENTS: In 1992, P.L. 102-318, Sec. 521(b)(20), substituted `section 402(e)(3)' for `section 402(a)(8)' in subclause (n)(5)(C)(iii)(I)... Sec. 521(b)(21), substituted `402(e)(3)' for `402(a)(8)' in clause (q)(7)(B)(i) ... Sec. 521(b)(22), substituted `402(e)(3)' for `402(a)(8)' in para. (s)(2), effective for distributions after 12/31/92. For special rule, see Sec. 521(e)(2) of this Act which reads as follows: (2) Special rule for partial distributions. For purposes of section 402(a)(5)(D)(i)(II) of the Internal Revenue Code of 1986 (as in effect before the amendments made by this section), a distribution before January 1, 1993, which is made before or at the same time as a series of periodic payments shall not be treated as one of such series if it is not substantially equal in amount to other payments in such series. In 1990, P.L. 101-508, Sec. 11703(b)(1), deleted `(6 months in the case of core health benefits)' after `at least 1 year,' in subpara. (n)(2)(B), effective as provided in Secs. 1151(k)(1) and (4) of P.L. 99-514, reproduced below. In 1989, P.L. 101-239, Sec. 7811(m)(5), added `section' before `403(b)' in para. (p)(10), effective 12/31/84.  P.L. 101-239, Sec. 7813(b), corrected Secs. 3011(b)(4) and (5) of P.L. 100-647 which amended subpara. (n)(3)(C) and para. (t)(2) to read `as amended by section 1011B(a) of this Act' instead of `as amended by section 111B(a) of this Act' and to strike out `162(k)' instead of `162(k)(2)', see below.  P.L. 101-239, Sec. 7841(a)(2), redesignated para. (p)(11) as para. (p)(12) and added new para. (p)(11), effective for transfers after 12/19/89 in tax. yrs. end. after 12/19/89.  P.L. 101-140, Sec. 203(a)(6)(A), deleted `89,' which followed `79,' in subpara. (n)(3)(C) ... Sec. 203(a)(6)(B), substituted `section' for `sections 89 and' in para. (r)(1) ... Sec. 203(a)(6)(C), deleted `89,' which followed `79,' in para. (t)(2), effective as provided in Sec. 1151(k)(1) and (4) of P.L. 99-514, reproduced below.  P.L. 101-140, Sec. 204(b)(1), of this Act, effective for yrs. begin. after 12/31/86, provides: (b) Line of business test.  (1) Application of line of business test for period before guidelines issued.  In the case of any plan year beginning on or before the date the Secretary of the Treasury or his delegate issues guidelines and begins issuing determinations under section 414(r)(2)(C) of the Internal Revenue Code of 1986, an employer shall be treated as operating separate lines of business if the employer reasonably determines that it meets the requirements of section 414(r) (other than paragraph (2)(C) thereof) of such Code.  P.L. 101-140, Sec. 204(b)(2), substituted `sections 129(d)(8) and 410(b)' for `section 410(b)' in para. (r)(1) [as amended by Sec. 203(a)(6)(B) of this Act, see above], effective for yrs. begin. after 12/31/88.  P.L. 101-136, Sec. 528, provided that `no monies appropriated by this Act [for the fiscal year ending September 30, '90] may be used to implement or enforce section 1151 of the Tax Reform Act of '86 [P.L. 99-514] or the amendments made by such section.' [See below] In 1988, P.L. 100-647, Sec. 1011(d)(8), substituted `50 percent of the amount in effect under section 415(b)(1)(A)' for `150 percent of the amount in effect under section 415(c)(1)(A)', effective for tax. yrs. begin. after 12/31/86.  P.L. 100-647, Sec. 1011(e)(4), added `or any requirement under section 457' after `(n)(3)' in subsec. ( o ), effective for tax. yrs. begin. after 12/31/88.  P.L. 100-647, Sec. 1011(h)(5), substituted `(16), (17), and (26)' for `and (16)' in subparas. (m)(4)(A) and (n)(3)(A), effective for plan yrs. begin. after 12/31/88.  P.L. 100-647, Sec. 1011(i)(1), added the sentence at the end of para. (q)(1) ... Sec. 1011(i)(2), added subpara. (q)(6)(C) ... Sec. 1011(i)(3)(A), added `and' at the end of subpara. (q)(8)(D), substituted a period for `, and' at the end of subpara. (q)(8)(E), deleted subpara. (q)(8)(F) and substituted `Except as provided by the Secretary, the' for `The' in the last sentence of para. (q)(8) ... Sec. 1011(i)(3)(B), added para. (q)(11) ... Sec. 1011(i)(4)(A), added `or the number of officers taken into account under paragraph (5)' after `paragraph (4)' in para. (q)(8) ... Sec. 1011(j)(1), amended para. (s)(1) ... Sec. 1011(j)(2), deleted para. (s)(2), redesignated paras. (s)(3) and (s)(4) as paras. (s)(2) and (s)(3) and added new para. (s)(4), effective for yrs. begin. after 12/31/86. Prior to deletion, subpara. (q)(8)(F) read as follows: (F) employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)). Prior to amendment, para. (s)(1) read as follows: (1) In general. The term `compensation' means compensation for service performed for an employer which (taking into account the provisions of this chapter) is currently includible in gross income. Prior to deletion, para. (s)(2) read as follows: (2) Self-employed individuals. The Secretary shall prescribe regulations for the determination of the compensation of an employee who is a self-employed individual (within the meaning of section 401(c)(1) which are based on the principles of paragraph (1).  P.L. 100-647, Sec. 1011( l )(12), amended Sec. 1117 [reproduced below] of P.L. 99-514, by adding new para. 1117(d)(4), see below.  P.L. 100-647, Sec. 1011A(b)(3), added `72(d) (relating to treatment of employee contributions as separate contract),' before `411(a)(7)(A)' in para. (k)(2), effective for amounts distributed after 12/31/86, in tax. yrs. end. after 12/31/86.  P.L. 100-647, Sec. 1011B(a)(16), added `and' at the end of subpara. (m)(4)(A), substituted a period for a comma at the end of subpara. (m)(4)(B) and deleted subparas. (m)(4)(C) and (m)(4)(D) ... Sec. 1011B(a)(17), substituted `132, 162(i)(2), 162(k),' for `132,' in para. (t)(2) ... Sec. 1011B(a)(19), substituted `132, 162(i)(2), 162(k),' for `132,' in subpara. (n)(3)(C) ... Sec. 1011B(a)(20), deleted `of section 414' each place it appeared in para. (t)(1), effective as provided in Secs. 1115(k)(1) and (4) of P.L. 99-514 [reproduced below]. Prior to deletion subparas. (m)(4)(C), (D) read as follows: (C) section 105(h), and (D) section 125.  P.L. 100-647, Sec. 1011B(a)(25), added the last sentence to Sec. 1151(k)(1) of P.L. 99-514 [reproduced below], part of the effective date for changes made by Sec. 1151(e)(1) and (i) of P.L. 99-514, see below  P.L. 100-647, Sec. 1018(t)(8)(E), substituted `means the earlier of' for `means earlier of' and deleted `in' each place it appeared in subpara. (p)(4)(B) ... Sec. 1018(t)(8)(F), added `, 403(b),' after `401' in para. (p)(10) ... Sec. 1018(t)(8)(G), added the sentence at the end of para. (p)(9), effective 12/31/84.  P.L. 100-647, Sec. 2005(c)(1), added para. ( l )(2) ... Sec. 2005(c)(2), amended the heading of subsec. ( l ), effective for transactions occurring after 7/26/88. Sec. 2005(c)(3)(B) of this Act provides: (B) The amendments made by this subsection shall not apply to any transaction occurring after 7-26-88, if on or before such date the board of directors of the employer, approves such transaction or the employer took similar binding action. Prior to amendment the heading of subsec. ( l ) read as follows: ( l ) Mergers and consolidations of plans or transfers of plan assets.  P.L. 100-647, Sec. 3011(b)(4), [as amended by Sec. 7813(b) of P.L. 101-239, see above] deleted `162(i)(2), 162(k)' before `247(j)' and substituted `505, and 4980B' for `and 505' in subpara. (n)(3)(C) [as amended by section 1011B(a) of this Act] ... Sec. 3011(b)(5), [as amended by Sec. 7813(b) of P.L. 101-239, see above] deleted `162(i)(2), 162(k)(2) [sic]' before `274(j)' and substituted `505, or 4980B' for `or 505' in para. (t)(2) [as amended by section 1011B(a) of this Act], effective for tax. yrs. begin. after 12/31/88, but shall not apply to any plan for any plan year to which '86 Code Sec. 162(k) (as in effect on 11/9/88) did not apply by reason of section 10001(e)(2) of P.L. 99-272.  P.L. 100-647, Sec. 3021(b)(1), added para. (q)(12) ... Sec. 3021(b)(2)(A), amended para. (r)(3), effective for yrs. begin. after 12/31/86. Prior to amendment, para. (r)(3) read as follows: (3) Safe harbor rule. The requirements of subparagraph (C) of paragraph (2) shall not apply to any line of business if the highly compensated employee percentage with respect to such line of business is  (A) not less than one-half, and (B) not more than twice, the percentage which highly compensated employees are of all employees of the employer. An employer shall be treated as meeting the requirements of subparagraph (A) if at least 10 percent of all highly compensated employees of the employer perform services solely for such line of business.  P.L. 100-647, Sec. 6067(a), added subpara. ( l )(2)(G), effective for transactions occurring after 7/26/88. For special rules, see Sec. 2005(c)(3)(B) reproduced above. Sec. 6067(b) of this Act provides: (b) Study. The Secretary of the Treasury or his delegate, in consultation with the Federal Deposit Insurance Corporation, shall conduct a study with respect to the proper method of allocating assets in the case of a transaction to which the amendment made by this subsection applies. The Secretary of the Treasury shall not later than 1-1-90, report the results of such study to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate. In 1987, P.L. 100-203, Sec. 9305(c), deleted `the minimum funding standard of section 412, the tax imposed by section 4971, and' after `more than one such corporation,' in subsec. (b), effective for plan years begin. after 12/31/87. In 1986, P.L. 99-514, Sec. 1114(a), added subsec. (q), effective for yrs. begin. after 12/31/86. For special rule for determining highly compensated employees, see Sec. 1114(c)(4) of this Act reproduced in note following Code Sec. 401.  P.L. 99-514, Sec. 1114(b)(11), substituted `highly compensated employees (within the meaning of section 414(q))' for `officers, highly compensated employees, or owners', in clause (m)(2)(B)(ii), effective for yrs. begin. after 12/31/88.  P.L. 99-514, Sec. 1115(a), added subsecs. (r) and (s), effective for yrs. begin. after 12/31/86.  P.L. 99-514, Sec. 1117(c), substituted `, 415 (relating to limitations on benefits and contributions under qualified plans), and 401(m) (relating to nondiscrimination tests for matching requirements and employee contributions)' for `and 415 (relating to limitations on benefits and contributions under qualified plans)' in para. (k)(2), effective for plan yrs. begin. after 12/31/86. For special rules, see Sec. 1117(d)(2)-(4) of P.L. 99-514 [as added by P.L. 100-647, Sec. 1011( l )(12)] reproduced in note following Code Sec. 401.  P.L. 99-514, Sec. 1146(a)(1), amended para. (n)(5), effective for services performed after 12/31/86. Prior to amendment, para. (n)(5) read as follows: (5) Safe harbor. This subsection shall not apply to any leased employee if such employee is covered by a plan which is maintained by the leasing organization if, with respect to such employee, such plan  (A) is a money purchase pension plan with a nonintegrated employer contribution rate of at least 7 1/2 percent, and (B) provides for immediate participation and for full and immediate vesting.  P.L. 99-514, Sec. 1146(a)(2), amended para. (n)(4) ... Sec. 1146(a)(3), amended para. (n)(6) ... Sec. 1146(b)(1), added the sentence at the end of subsec. ( o ) ... Sec. 1146(b)(2), deleted `except to the extent otherwise provided in regulations,' following `listed in paragraph (3),' in para. (n)(1), effective for tax. yrs. begin after 12/31/83. Sec. 1146(c)(3) of this Act provides: (3) Recordkeeping requirements. In the case of years beginning before the date of the enactment of this Act, the last sentence of section 414( o ) shall be applied without regard to the requirement that an insignificant percentage of the workload be performed by persons other than employees. Prior to amendment, paras. (n)(4) and (n)(6) read as follows: (4) Time when leased employee is first considered as employee. In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the pension requirements listed in paragraph (3) are met for periods after the close of the 1-year period referred to in paragraph (2); except that years of service for the recipient shall be determined by taking into account the entire period for which the leased employee performed services for the recipient (or related persons). (6) Related persons. For purposes of this subsection, the term `related persons' has the same meaning as when used in section 103(b)(6)(C).  P.L. 99-514, Sec. 1151(e)(1), added subsec. (t) ... Sec. 1151(i)(1), substituted `requirements' for `pension requirements' in para. (n)(1) ... Sec. 1151(i)(2), added `(6 months in the case of core health benefits)' after `1 year' in subpara. (n)(2)(B) ... Sec. 1151(i)(3), substituted `Requirements' for `Pension requirements' in the heading of para. (n)(3), substituted `requirements' for `pension requirements' in para. (n)(3), deleted the `and' at the end of subpara. (n)(3)(A), substituted `and' for the period at the end of subpara. (n)(3)(B), and added new subpara. (n)(3)(C), effective as provided in Secs. 1151(k)(1) [as amended by Sec. 1011B(a)(25) of P.L. 100-647, see above] and (4) of this Act which read as follows: (1) In general.  The amendments made by this section shall apply to years beginning after the later of  (A) December 31, 1987, or (B) the earlier of  (i) the date which is 3 months after the date on which the Secretary of the Treasury or his delegate issues such regulations as are necessary to carry out the provisions of section 89 of the Internal Revenue Code of 1986 (as added by this section), or (ii) December 31, 1988. Notwithstanding the preceding sentence, the amendments made by subsections (e)(1) and (i)(3)(C) shall, to the extent they relate to sections 106, 162(i)(2), and 162(k) of the Internal Revenue Code of 1986, apply to years beginning after 1986.