Page 301

TITLE 26-INTERNAL REVENUE CODE Subsec. (W)(4(L). Pub. L. 94-455, §§ 1402(b)(1)(C), 15.Y 2(a), added subsec. (e)(4)(L) to be applicable to dis- tributions and payments after Dec. 31, 1975, in taxable years beginning after Dec. 31, 1975, and provided that "6 months" therein would be changed to "9 months" for taxable years beginning in 1977. 1974-Subsee. (a)(2). Pub. L. 93-406, § 2005(b)(1), substituted provisions covering capital gains treatment of portions of lump sum distributions determined through the application of a fraction formula suscepti- ble of producing a phaseout of capital gains treatment for provisions covering capital gains treatment of por- tions of lump sum distributions determined on a fixed formula. Subsec. (a)(3)(C). Pub. L. 93-406, § 2005(c)(1), struck out subsec. (a)(3)(C), which defined the term "total distribution payable". Subsec. (a)(5). Pub. L. 93-406, §§ 2002(g)(5), 2005(c)(2), substituted provisions covering rollover amounts for provisions covering limitation on capital gains treatment. Subsec. (e). Pub. L. 93-406, § 2005(a), substituted pro- visions covering tax on lump sum distributions for pro- visions covering plan termination distributions made after Dec. 31, 1953, and before Jan. 1, 1955. 1969-Subsec. (a)(5). Pub. L. 91-172, § 515(a)(1), added subsec. (a)(5). Subsec. (b). Pub. L. 91-172, §321(b)(1), substituted provision for inclusion of contributions made by an employer to a nonexempt trust in the "gross income of the employee in accordance with section 83 (relating to property transferred in connection with perfor- mance of services), except that the value of the em- ployee's interest in the trust shall be substituted for the fair market value of the property for purposes of applying such section" for prior provision for inclusion In the "gross income of an employee for the taxable year in which the contribution is made to the trust in the case of an employee whose beneficial interest in such contribution is nonforfeitable at the time the contribution is made", and provided that distributions of income of such trust before the annuity starting date (as defined in section 72(c)(4)) shall be included in the gross income of the employee without regard to section 72(e)(1) (relating to amount not received as an- nuities) and that a beneficiary of any such trust shall not be considered the owner of any portion of such trust under subpart E of part I of subch. J (relating to grantors and others treated as substantial owners). 1964-Subsec. (a)(1). Pub. L. 88-272, § 232(e)(1). de- leted "except that section 72(e)(3) shall not apply" fol- lowing "(relating to annuities)". Subsec. (a)(3)(B). Pub. L. 88-272, § 221(c)(1), substi- tuted "subsections (e) and (f) of section 425" for "sec- tion 421(d) (2) and (3)". Subsec. (b). Pub. L. 88-272, § 232(e)(2), deleted "except that section 72(e)(3) shall not apply" follow- ing "(relating to annuities)". Subsec. (d. Pub. L. 88-272, § 232(e)(3), deleted "except that section 72(e)(3) shall not apply" follow- ing "(relating to annuities)". 1962-Subsec. (a)(2). Pub. L. 87-792 inserted sen- tence providing that this paragraph shall not apply to distributions paid to any distributee to the extent such distributions are attributable to contributions made on behalf of the employee while he was an em- ployee within the meaning of section 401(c,(1l). 1960-Subsec. (a)(1). Pub. L. 86-437, § 2(a), substitut- ed "paragraphs (2) and (4)" for "paragraph (2)". Subsec. (a)(4). Pub. L. 86-437, § 1, added subsec. (a)(4). Erer ivE DATE OF 1976 AMENDMENT Section 1512(b) of Pub. L. 94-455 provided that: "The amendment made by this section (adding subsec. (e)(4)(L) of this section] shall apply to distributions and payments made after December 31, 1975, in tax- able years beginning after such date." Section 1402(b)(1) of Pub. L. 94-455 provided in part that the substitution of "9 months" for "6 months" in subsecs. (a)(2) and (e)(4)(L) of this section by section 1402(b)(1)(C) of Pub. L. 94-455 is effective with re- spect to taxable years beginning in 1977. Section 1901(a)(57)(C)(ii) of Pub. L. 94-455 provided that: "The amendment made by clause (i) [amending subsec. (e)(4)(A) of this section] shall apply with re- spect to distributions or payments made after Decem- ber 31, 1973, in taxable years beginning after such date." Amendment by Pub. L. 94-267 applicable with re- spect to payments made to an employee on or after July 4, 1974, see section I(e) of Pub. L. 94-267, set out as an Effective Date of 1976 Amendment note under section 401 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Section 2002(i)(3) of Pub. L. 93-406 provided that: "The amendments made by subsection (g) (5) and (6) [of section 2002 of Pub. L. 93-406, which enacted subsec. (a)(5) of this section and section 403(a)(4) of this title] shall apply on and after the date of enact- ment of this Act [Sept. 2, 1974] with respect to contri- butions to an employees' trust described in section 401(a) of the Internal Revenue Code of 1954 [section 401(a) of this title] which is exempt from tax under section 501(a) of such Code [section 501(a) of this title] or an annuity plan described in section 403(a) of such Code [section 403(a) of this title]." Section 2005(d) of Pub. L. 93-406 provided that: "The amendments made by this section [striking out subsec. (a)(3)(C) of this section and subsec. (a)(5) of this section as in effect on Dec. 31, 1973, at which time subsec. (a)(5) had covered limitation on capital gains treatment, and amending subsec. (a)(2) and (e) of this section and sections 46, 50A, 56, 62, 72, 101, 122, 403, 405, 406, 407, 871, 877, 901, 1304, and 1348 of this title] shall apply only with respect to distributions or pay. ments made after December 31, 1073, in taxable years beginning after such date." EFFECTIVE DATE OF 1969 AMENDMENT Section 515(d) of Pub. L. 91-172 provided that: "The amendments made by this section [amending this sec- tion and sections 72, 403, 405, 406, 407 and 1304 of this title] shall apply to taxable years ending after Decem- ber 31, 1969." Amendment of subsec. (b) of this section by section 321(b)(1) of Pub. L. 91-172 applicable with respect to contributions made and premiums paid after Aug. 1, 1969, see section 321(d) of Pub. L. 91-172, set out as an Effective Date note under section 83 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Amendment of subsec. (a)(3)(B) of section by Pub. L. 88-272 applicable to taxable years ending after Dec. 31, 1963, see section 221(e) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under sec- tion 421 of this title. Amendment of subsecs. (a)(1), (b) and (d) of this sec- tion by Pub. L. 88-272 applicable to taxable years be- ginning after Dec. 31, 1963, see section 232(g) of Pub. L. 88-272, set out as an Effective Date note under sec- tion 1301 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 Amendments note under section 37 of this title. EFFECTIVE DATE OF 1960 AMENDMENT Section 3 of Pub. L. 86-437 provided that: "The amendments made by this Act [to subsec. (a) of this section and section 871(d) of this title] shall apply only with respect to taxable years beginning after De- cember 31, 1959." TRANSITIONAL RULES RELATING TO PERIOD FOR ROLLOVER CONTRIBUTION Section 1(d) of Pub. L. 94-267 provided that: "(1) In general.- Page 301 § 402