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TITLE 26-INTERNAL REVENUE CODE EFFECTIVE DATE OF 1974 AMENDMENT Amendment of subsecs. (a)(1), (2), (6), and (7) by sec- tions 1013(c) and 1016(a)(3) of Pub. L. 93-406 Epplica- ble, except as otherwise provided in section 1017(c) through (h) of Pub. L. 93-406, for plan years begin- ning after Sept. 2. 1974, but, in the case of plans in ex- istence on Jan. 1, 1974, amendment by sections 1013(c) and 1016(a)(3) of Pub. L. 93-406 applicable for plan years beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93-406, set out as an Effective Date; Transi- tional Rules note under section 410 of this title.. Amendment of subsecs. (a)(2), (3)(A) of this section by section 2004(b), (c)(1) of Pub. L. 93-406 applicable to years beginning after Dz--. 31, 1975, see section 2004(d) of Pub. L. 93-406, set out as an Effective Date; Transition Provisions note under section 415 of this title. Amendment of subsecs. (a)(2) and (a)(9)(B)(ii) of this section by section 2001(g)(2)(E), (F) of Pub. L. 93- 40 applicable to distributions made in taxable years beginning after Dec. ,1, 1975, see section 2001(i)(5) of Pub. L. 93-406, set out as an Effective Date of 1974 Amendment note under section 72 of this title. Section 2007(c) of Pub. L. 93-406 provided that: "The amendments made by this section [amending subsec. (c) of this section] shall apply to taxable years ending on or after June 30, 1972." Section 2001(i)(1) of Pub. L. 93-406 provided that: "The amendments made by subsections (a) [amending subsec. (e)(1) and (e)(2)(A) and adding subsec. (e)(4) of this section] and (b) [amending section 1379(b)(1) (A) and (B) of this title] apply to taxable years beginning after December 31, 1973." Subsec. (g) of this section effective on Sept. 2, 1974, with exceptions specified in section 1381(b), (c) of Title 29, Labor, see section 1381(a) of Title 29. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 applicable with re- spect 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 1966 AMENDMENT Amendment of subsecs. (a) and (e) of this section by section 204(a), (b) of Pub. L. 89-809 applicable with re- spect to taxable years beginning after Dec. 31, 1967, see section 204(d) of Pub. L. 89-809, set out as an Ef- fective Date of 1966 Amendment note under section 401 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-863 applicable to taxable years beginning after Oct. 23, 1962, see section 2(c) of Pub. L. 87-863, set out as an Effective Date of 1962 Amendments note under section 401 of this title. 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 1958 AMENDMENT Amendment of subsec. (a) of this section by Pub. L. 85-866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Au, 16, 1954, see section l(c) of Pub. L. 85-866, set out L; an Effective Date of • 1958 Amendment note under section 165 of this title. YEAR OF DEDUCTION FOR CERTAIN EMPLOYER CONTRIBU- TIONS FOR SEVERANCE PAYMENTS REQUIRED BY FOR- EIGN LAW Section 1022(j) of Pub. L. 93-406 provided that: "Effective for taxable years beginning after Decem- ber 31, 1973, if- "(1) an employer is engaged in a trade or business In a foreign country, "(2) such employer is required by the laws of that country to make payments, based on periods of ser- vice, to its employees or their beneficiaries after the employees' retirement, death, or other separation from the service, and "(3) such employer establishes a trust (whether or- ganized within or outside the United States) for the purpose of funding the payments required by such law, then, in determining for purposes of paragraph (5) of section 404(a) of the Internal Revenue Code of 1954 [subsec. (a) of this section] the taxable year in which any contribution to or under the plan is includible in the gross income of the nonresident alien employees of such employer, such paragraph (5) shall be treated as not requiring that separate accounts be maintained for such nonresident alien employees." CROSS REFERENCES Non-trade or non-business expenses deductible, see section 212 of this title. Ordinary necessary business expenses deductible, see section 162 of this title. Time for filing return, see sections 6072, 6081 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 62, 72, 83, 104, 172, 381, 401 to 403, 405, 406, 407, 413, 414, 542, 556, 679, 1379, 2517, 4941 of this title; title 15 sections 78c, 781, 80a-3; title 19 section 2373; title 29 sections 1103, 1321, 1322. § 405. Qualified bond purchase plans (a) Requirements for qualification A plan of an employer for the purchase for and distribution to his employees or their bene- ficiaries of United States bonds described in subsection (b) shall constitute a qualified bond purchase plan under this section if- (1) the plan meets the requirements of sec- tion 401(a)(3), (4), (5), (6), (7), (8), (16), and (19) and, if applicable, the requirements of section 401(a)(9) and (10) and of section 401(d) (other than paragraphs (1), (5)(B), and (8)); and (2) contributions under the plan are used solely to purchase for employees or their beneficiaries United States bonds described in subsection (b). (b) Bonds to which applicable (1) Characteristics of bonds This section shall apply only to a bond issued under the Second Liberty Bond Act, as amended, which by its terms, or by regula- tions prescribed by the Secretary under such Act- (A) provides for payment of interest, or investment yield, only upon redemption; (B) may be purchased only in the name of an individual; (C) ceases to bear interest, or provide in- vestment yield, not later than 5 years after the death of the individual in whose name it is purchased; (D) may be redeemed before the death of the individual in whose name it is pur- chased only if such individual- (I) has attained the age of 591/2 years, or (ii) has become disabled (within the meaning of section 72(m)(7)); and (E) is nontransferable. (2) Must be purchased in name of employee This section shall apply to a bond described in paragraph (1) only if it is purchased in the name of the employee. § 405 Page 312