100 STAT. 2518
PUBLIC LAW 99-514—OCT. 22, 1986
s'^ rities as part of an installment distribution, the requirements of '^ paragraph (I)(B) shall be treated as met if the amount to be paid for the employer securities is paid not later than 30 days after the exercise of the put option described in paragraph (4)." (B) EFFECTIVE DATE.—The amendment made by this paragraph shall apply to distributions attributable to stock acquired after December 31, 1986, except that a plan may elect to have such amendment apply to all distributions V; after the date of the enactment of this Act. (2) PUT OPTION REQUIREMENT EXTENDED TO STOCK BONUS PLANS.—
(A) IN GENERAL.—Section 401(a)(23) is amended to read as follows: , "(23) A stock bonus plan shall not be treated as meeting the requirements of this section unless such plan meets the requirements of subsections (h) and (o) of section 409, except that in appl)ang section 409(h) for purposes of this paragraph, the term > 'employer securities' shall include any securities of the employer held by the plan." (B) EFFECTIVE DATE.—The amendment made by this paragraph shall apply to distributions attributable to stock acquired after December 31, 1986. (d) NONDISCRIMINATION REQUIREMENTS.—
(1) IN GENERAL.—Subparagraph (A) of section 415(c)(6) is , j^, amended by striking out "the group of employees consisting of I.J officers, shareholders owning more than 10 percent of the employer's stock (determined under subparagraph (B)(iv)), or employees described in subparagraph (B)(iii)" and inserting in lieu thereof "highly compensated employees (within the meaning of section 414(q))". ^
(2) CONFORMING AMENDMENTS.—
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(A) Subparagraph (B) of section 415(c)(6) is amended by striking out clauses (iii) and (iv) thereof. (B) Subparagraph (C) of section 415(c)(6) is amended by striking out "the group of employees consisting of officers, vi shareholders owning more than 10 percent of the employt er's stock (determined under subparagraph (B)(iv)), or
- f; ji employees described in subparagraph (B)(iii)" and inserting
in lieu thereof "highly compensated employees (within the fH meaning of section 414(q))". (3) EFFECTIVE DATE.—The amendments made by this subsec1 tion shall apply to years beginning after December 31, 1986. SEC. 1175. ADDITIONAL QUALIFICATION REQUIREMENTS. (a) ADDITIONAL QUALIFICATION STOCK OWNERSHIP PLANS.—
REQUIREMENTS FOR EMPLOYEE
(1) IN GENERAL.—Subsection (a) of section 401 (relating to qualified pension, profit-sharing, and stock bonus plans), as amended by this Act, is amended by inserting after paragraph (27) the following new paragraph: J1
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"(28) ADDITIONAL REQUIREMENTS RELATING TO EMPLOYEE STOCK OWNERSHIP PLANS.—
"(A) IN GENERAL.—In the case of a trust which is part of an employee stock ownership plan (within the meaning of section 4975(e)(7)) or a plan which meets the requirements of section 409(a), such trust shall not constitute a qualified
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