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TITLE 26-INTERNAL REVENUE CODE insurance contract were exercised at such time), and (ii) as discounted on the basis of the in- terest rate and mortality tables used by the insurer in calculating payments under the agreement. (3) Surviving spouse For purposes of this subsection, the term "surviving spouse" means the spouse of the insured as of the date of death, including a spouse legally separated but not under a decree of absolute divorce. (4) Application of subsection This subsection shall not apply to any amount to which subsection (c) is applicable. (e) Alimony, etc., payments (1) In general This section shall not apply to so much of any payment as is includible in the gross income of the wife under section 71 (relating to alimony) or section 682 (relating to income of an estate or trust in case of divorce, etc.). (2) Cross reference For definition of "wife", see section 7701(a)(17). (Aug. 16, 1954, ch. 736, 68A Stat. 26; Sept. 2, 1958, Pub. L. 85-866, title I, § 23(d), 72 Stat. 1622; Oct. 10, 1962, Pub. L. 87-792, § 7(c), 76 Stat. 829; Mar. 8, 1966, Pub. L. 89-365, § 1(c), 80 Stat. 32; Dec. 30, 1969, Pub. L. 91-172, title I, § 101(J)(1), 83 Stat. 526; Sept. 2, 1974, Pub. L. 93- 406, title II, §§ 2005(c)(15), 2008(b)(3), 88 Stat. 992, 994; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1901(a)(16), 1906(b)(13)(A), 90 Stat. 1765, 1834.) AMENDMENTS 1976-Subsec. (d)(1). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (f). Pub. L. 94-455, § 1901(a)(16), struck out subsee. (f) relating to effective date of section. 1974-Subsec. (b)(2)(B). Pub. L. 93-406, § 2005(c)(15), substituted "a lump sum distribution (as defined in section 402(e)(4)" for "total distributions payable (as defined in section 402(a)(3)) which are paid to a distri- butee within one taxable year of the distributee by reason of the employee's death". Subsec. (b)(2)(D). Pub. L. 93-406, § 2008(b)(3), substi- tuted "if the member or former member of the uni- formed services by reason of whose death such annu- ity is payable" for "if the individual who made the election under such chapter". 1969-Subsec. (b)(2)(B)(iii). Pub. L. 91-172 substitut- ed references to section 170(b)(1)(A) (ii) and (vi), and to religious organizations, for references to section 503(b) (1), (2), or (3). 1966-Subsec. (b)(2)(D). Pub. L. 89-365 provided that par. (1) shall not apply in the case of an annuity under chapter 73 of Title 10 if the individual who made the election under that chapter died after attaining retire- ment age. 1962-Subsec. (b)(2)(B). Pub. L. 87-792, § 7(c)(1), sub- stituted "described in section 403(a)" for "which meets the requirements of paragraphs (3), (4), (5), and (6) of section 401(a)" in cl. (ii). Subsec. (b)(3). Pub. L. 87-792, § 7(c)(2), added subsec. (b)(3). 1958-Subsec. (b)(2)(B). Pub. L. 85-866 substituted "This subparagraph shall not apply to total distribu- tions payable (as defined in section 402(a)(3) which are paid to a distributee within one taxable year of the distributee by reason of the employee's death-" for "(other than total distributions payable, as defined in section 402(a)(3), which are paid to distributee, by a stock bonus, pension, or profit-sharing trust described in section 401(a) which is exempt from tax under sec. tion 501(a), or under an annuity contract under a plan which meets the requirements of paragraphs (3), (4), (5), and (6) of section 401(a), within one taxable year of the distributee by reason of the employee's death)", and added clauses (i), (ii), and (i1). EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (d)(1) by section 1906(b)(13)(A) of Pub. L. 94-455 effective Feb. 1, 1977, see section 1906(d)(1) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 6013 of this title. Deletion of subsec. (f) by section 1901(a)(16) of Pub. L. 94-455 applicable with respect to taxable years be- ginning after Dec. 31, 1976, see section 1901(d) of Pub, L. 94-455, set out as an Effective Date of 1976 Amend- ment note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Amendment of subsec. (b)(2)(B) by section 2005(c)(15) of Pub. L. 93-406 applicable only with re- spect to distributions and payments made after Dec. 31, 1973, in taxable years beginning after Dec. 31, 1973, see section 2005(d) of Pub. L. 93-406, set out as an Effective Date of 1974 Amendment note under sec- tion 402 of this title. Amendment of subsec. (b)(2)(D) by section 2008(b)(3) of Pub. L. 93-406 applicable to taxable years ending on or after Sept. 21, 1972, with respect to individuals dying on or after Sept. 21, 1972, see section 2008(c) of Pub. L. 93-406, set out as an Effective Date of 1974 Amendment note under section 122 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section 101(k)(1) of Pub, L. 91-172, set out as an Effective Date note under section 4940 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment of subsec. (b)(2)(D) by Pub. L. 89-365 applicable with respect to individuals making an elec- tion under chapter 73 of Title 10 who died after Dec. 31, 1965, see section 1(d) of Pub. L. 89-365, set out as an Effective Date note under section 122 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as an Effective Date of 1962 Amendment note under section 37 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Amendment of subsec. (b)(2)(B) by Pub. L. 85-866 applicable to taxable years beginning after Dec. 31, 1957, see section 23(g) of Pub. L. 85-866, set out as an Effective Date of 1958 Amendment note under section 403 of this title. CROSS REFERENCES Basis rules of general application, see section 1011 et seq. of this title. Credit for the elderly, prohibition against reduction for exclusion from gross income of life insurance pro- ceeds, see section 37 of this title. Employee defined, see section 7701 of this title. Rules and regulations, see section 7805 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 37, 72, 406, 407, 7701 of this title; title 40 section 484. SECTION REFERRED TO IN D.C. CODE This section is referred to in section 46-301 of the District of Columbia Code. Page 111 § 10i